Gross income is higher than net income and includes total revenue or income, whereas net income refers to net profits after all expenses, taxes, and deductions are taken out. Because these are two different calculations, they have entirely different purposes for gauging how a company is doing. Gross profit is useful to determine how well […]

Typically, income statement and balance sheet are prepared in a comparative form to undertake such an analysis. The operating activities on the CFS include any sources and uses of cash from running the business and selling its products or services. Cash from operations includes any changes made in cash accounts receivable, depreciation, inventory, and accounts payable. […]