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How to calculate Net Income: Example 1, 101
(1) Sales Revenue (2) Sales Returns and Allowances (3) Cost of Goods Sold (COGS) (4) Operating Expenses (5) Non-Operating Income (6) Non-Operating Expenses (7) Income Taxes (GP) Gross Profit = (1) - (2) - (3) (OI) Operating Income = (GP) - (4) (IBIT) Income Before Income Taxes = (OI) + (5) - (6) (NI) Net Income = (IBIT) - (7) #Financial ...
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