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Net Income




Net income is sometimes called the bottom line because it is typically found on the last line of a company's Income Statement .

An equation for net income in merchandising:

:Net income or Net loss = Revenue - Cost of goods sold - Sales discounts - Sales returns and allowances - Expenses = Profit

Another term that is closely related to this is top line. As the Total Revenue forms the first line of the account statement, it is often called top line.