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Trading account statement does not report net of income taxes or net of income.
Amortization of discount is added back to net income as there is no actual cash outflow due to amortization and that's why it is added back to cash flow from operating activities.
when net income is zero
Net Income = Sales - ExpensesSo as many expanses net income will be lower.
Cash dividend paid has nothing to deal with net income as net income is calculated first and after that it is distributed. If cash dividend is received then it is included in net income calculations and increases the net income.
Net income is determined by subtracting expenses from income. This will give the actual amount of profits at the end of the day.
Income statement measures the amount of net profit or net loss related to specific fiscal year of business.
the actual amount of a paycheck after withholdings
GDP is the gross total income and NDP is the net domestic product
Net income percentage = Net income / Revenue
Yes this is right statement as if some expenses are forgot to record it overstated the net income and reduces the expenses but in actual there is less net income then shown in income statement.
Trading account statement does not report net of income taxes or net of income.
Net income percentage = Net income / Revenue
Cash flow rather than net income is used in capital budgeting analysis because the primary concern is with the amount of actual dollars generated. For example, depreciation is subtracted out in arriving at net income, but this non-cash deduction should be added back in to determine cash flow or actual dollars generated.
Amortization of discount is added back to net income as there is no actual cash outflow due to amortization and that's why it is added back to cash flow from operating activities.
net income is gross income less expenses
revenue - cost of goods = gross profit gross profit - operating costs - other expenses = net income Basically net income is what you have after making every possible deduction. It is the actual money the company or individual takes home. This can become quickly complicated as we start to include interest gains, dividends received and other returns and is specific to the business type.