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Posted on Oct 18, 2010
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What is net income and formula of net income?

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Srivatsan Raghavan

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  • Expert 120 Answers
  • Posted on Oct 18, 2010
Srivatsan Raghavan
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Joined: Oct 16, 2010
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Net income is the residual income of a person or company after adding total revenue and gains and subtracting all expenses and losses for the reporting period.(Source:Wikipedia)

In short,net income is the earned income after deducting taxes.

Net income = Total revenue - Tax - Loss - Other expenses

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Two ways to get to the same answer:
1) If X,Y, & Z are invested in the ratio of 4:5:6 then the amount invested in Z is 6/(4+5+6) times the total of N1200
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