How to Calculate Net Income from Balance Sheet
Liabilities is a term that describes your business’ financial obligations or the money it owes to others. Often, these may be divided into short-term (or current) liabilities and long-term debt. For financial reporting purposes, short-term financial obligations are usually due within one year or less. Meanwhile long-term liabilities have a due date that’s further away. J.C. Penney is a great example of the importance of looking at the complete financial picture. Net Income vs. Gross Income Although $12.5 billion in revenue appears impressive, debt servicing costs meant the company took a loss for the year. It's worth noting that examining the financials of any company works best when comparing over multiple periods and against other companies within the same industry. First, we do the same familiar step -- subtract the beginning period equity…