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An income statement is one of several documents all publicly held companies produce so that investors can track the company s financial health.
Net income in the income statement. Although a company s bottom. In order words it shows how much revenue left after the payment of all the expenses of the business. Net income is a key line item not only in the income statement but in all three core financial statements. While it is arrived at through the income statement the net profit is also used in both the balance sheet and the cash flow statement.
These terms refer to the value of a company s sales of goods and services to its customers. Calculating ni for. Net income ni is known as the bottom line as it appears as the last line on the income statement once all expenses interest and taxes have been subtracted from revenues. Net income is the amount which a company can save to pay off debt or for the investment in the new projects.
Two figures you can calculate from net income are the company s net income before taxes and the company s net income after taxes.
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