Example of Net Income for the Year

To determine the net profit for the year, the value of the net loss among other expenses and products must be subtracted from the operating profit.

Operating unit - Net loss among other expenses and products = Profit for the year

Example:
Suppose an operating profit of $ 367,000.00 and a net loss among other expenses and products of $ 20,000.00.

Observations:
1. If the net loss among other expenses and products is greater than the operating profit, the difference will be a loss for the year.
2. If there is an operating loss and a net loss among other expenses and products, they are added, being the total loss for the year.
3. If you have operating profit and net profit among other expenses and products, they are added together, being the total profit for the year.
4. If the net profit among other expenses and products is greater than the operating loss, the difference will be profit for the year.
5. If the net profit among other expenses and products is less than the operating loss, the difference will be a loss for the year.