Instead, they reallocate a portion of the RE to common stock and additional paid-in capital accounts. This allocation does not impact the overall size of the company’s balance sheet, but it does decrease the value of stocks per share. As stated earlier, there is no...
Once the company’s pre-tax income (EBT) has been reduced by its income tax expense, we’ve arrived at the company’s net income (the “bottom line”) for the given period. Public companies often disclose GAAP earnings and non-GAAP earnings that are reconciled to net income per the...
So if you’re interested in learning more about gross income, please keep reading. Knowing this number is crucial because you must disclose your entire revenue to the government so you can pay the correct amount of tax and avoid any fines or penalties. Net income...