Example: Net Income Calculation

Review this example to see how the system uses the computed total in the net income calculation:

Assets = 6,966,772.54

Liabilities + Equity = – 6,592,393.31

Net Income = 374,379.23

This calculation is based on:

Assets = 6,966,772.54

Liabilities + Equity:

• Current Liabilities = 755,755.74

• Long-Term Liabilities = 2,027,576.49

• Common Stock = 267,500.00

• Paid-in-Capital = 1,535,017.77

• Retained Earnings = 2,006,543.31

• Total Liabilities + Equity = 6,592,393.31