Changes

'''Net income''' is equal to the [[income]] that a firm has after subtracting costs and [[expense]]s from the total [[revenue]]. Expenses will typically include [[tax expense]]. For a [[merchandising]] [[company]], subtracted costs may be the cost of goods sold, sales discounts, and sales returns and allowances.  For a product company [[advertising]], [[manufacturing]], and design and development costs are included.

'''Net income''' is equal to the [[income]] that a firm has after subtracting costs and [[expense]]s from the total [[revenue]]. Expenses will typically include [[tax]] expense. For a [[merchandising]] [[company]], subtracted costs may be the cost of goods sold, sales discounts, and sales returns and allowances.  For a product company [[advertising]], [[manufacturing]], and design and development costs are included.

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

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