Net income represents the difference between revenues generated during the period and the related expenses, which generated that revenue.
Prior to calculating the net income, a Coeur d’Alene business should first calculate gross income.
The gross income is sale (or total revenues) minus the cost of those goods that were sold. Gross income does not take operating expenses into account. Net income on the other hand, is the gross income minus all the operating expenses, plus or minus other revenues and expenses.
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