Car dealers must list "Plus sales tax" when advertising a lease. When advertising a sale they can write "Net Cost" but this is a dishonest use of the phrase. The definition of net cost is gross cost minus income received. There are still other costs such as tax, setup fees, destination, etc.
Net income percentage = Net income / Revenue
Trading account statement does not report net of income taxes or net of income.
Net income percentage = Net income / Revenue
Legally he has to pay income tax on the net profit from the sale. It is income and therefore is taxable.
net income is gross income less expenses
Formula for net income is as follows: Net income = sales - expenses net income = 45000 - 25000 net income = 20000
40%
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 profit is not the same as net income. There are many things that can be deducted on a tax return form from net profit that reduce net profit down to net income.