Net income is a corporation’s overall earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other operating cost. This number is found on a company’s income statement and is a significant measure of how profitable the company is over a period of time. The measure is also used to calculate earnings per share. Net income is an individual’s income after deductions, credits and taxes are factored into gross income.
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