In short Net income is total revenue minus total expense which can be written as-. Gain loss from disposal of a discontinued component. Total revenue includes earnings from the sale of goods and services interest income and Income from the sale of the business or other Income.
Net Income ratio Net Farm Income gross income If you have any further question please feel free to contact your local Farm Management Educator or email me at akantrovmsuedu.
It is equal to your total income minus tax payments and pretax contributions. Normalized earnings are adjusted to remove the effects of seasonality revenue and expenses that are unusual or one-time influences. In very basic terms Net Income Formula is described as follows. Knowing your net income is important for managing your finances and paying your taxes.