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  • Gross Earnings Definition Example - InvestingAnswers
    For individuals, gross earnings are not the same as taxable income For example, if John used $250 of his $1,000 a week to invest in his 401(k) plan , his gross earnings would be $1,000 but his taxable income would be $750
  • Net Income | Example, Formula Meaning | InvestingAnswers
    Net income shows a company's income after all expenses Gross profit shows a company's revenue minus the costs of sales costs of goods sold After product costs, the remaining income should cover all other expenses Example of Net Income vs Gross Profit For example, a car manufacturer sells $1,000,000 worth of cars to dealerships
  • Operating Income | Formula Meaning - InvestingAnswers
    Net income is also referred to as “the bottom line” because it’s the last entry on an income statement Net income accounts for all expenses while operating income only accounts for expenses related to operations Look again at the income statement for Company X: The net income is $30,000, while the operating income is $50,000
  • Gross Profit | Definition Examples - InvestingAnswers
    The gross profit margin formula can be expressed as follows: Gross Profit Margin % = Gross Profit Total Sales Revenue Gross Profit Margin Example Using the Car Manufacturer XYZ’s income statement above, we can compute gross profit margin by dividing its gross profit by its total revenue This would look like:
  • Gross Margin Definition Example - InvestingAnswers
    What is Gross Margin? Gross margin is a required income statement entry that reflects total revenue minus cost of goods sold (COGS) Gross margin is a company's profit before operating expenses, interest payments and taxes Gross margin is also known as gross profit
  • Gross Profit Margin | Formula Definition - InvestingAnswers
    Gross profit margin should be high, as a higher margin means that there is more available to invest, save, and or cover indirect expenses A high gross profit margin indicates that a company is making more profit on sales and is, therefore, more efficient at converting raw materials into income
  • Personal Income Definition Example - InvestingAnswers
    If personal income is high, there could be more money spent in the economy, indicating a future business boom Why Personal Income Matters National personal income levels are very closely linked to the Gross Domestic Product (GDP), and they serve as a key indicator on consumer spending, inflationary pressures, the overall economy and markets
  • 500 - InvestingAnswers
    Go back to your previous page or try using our site search to find something specific © 2025 InvestingAnswers Inc
  • Parsonage Allowance Definition Example - InvestingAnswers
    When John Doe files his tax return at the end of the year, he can exclude the $50,000 parsonage allowance from his gross income The church must be sure to designate the $50,000 as a parsonage allowance, however
  • Discretionary Income Definition Example - InvestingAnswers
    Discretionary income is the income remaining after the essentials (taxes, food, clothing, shelter, etc ) have been paid for Discretionary income is often confused with disposable income -- disposable income is income available after paying taxes For example: Gross wages: $90,000 Taxes: (20,000) Disposable Income: $70,000 Mortgage Rent: (20,000)





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