how is net income found

Net income is found by subtracting a company's total expenses from its total revenues. The formula for calculating net income is:

Net Income = Total Revenue - Total Expenses

Total revenue includes all the income generated from the sale of products or services, while total expenses include all the costs incurred to run the business, such as operating expenses, interest expenses, and taxes. By subtracting total expenses from total revenue, you can determine the company's net income, which represents the profit or loss for a specific period of time.