How To Calculate Net Income
Lenders and investors sometimes prefer to use the operating net income to gauge the profitability of a business instead of the net income. The operating net income formula looks at the company’s profit from operations alone, it excludes income and expenses that are not part or related to the company’s core activities. Finding the net income on your income statement involves adding the total cost of sales and the total other expenses, and then deducting the result you got from the total revenue. The net…