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You are watching: In a merchandising business, sales minus operating expenses equals net income.


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Operating income looks at profit after deducting operating expenses such together wages, depreciation, and also cost of goods sold.
Gross profit is the benefit a firm makes ~ deducting the costs of making and also selling the products, or the costs of providing its services.
Operating Income before Depreciation and also Amortization (OIBDA) shows a company"s profitability in its core company operations.
A net loss is when expenses exceed the income or complete revenue created for a given duration of time and is sometimes dubbed a net operating loss (NOL).
Operating benefit is the complete earnings native a company"s core company operations, excluding deductions of interest and also tax.

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A non-operating expense is an expense incurred by a company that is unrelated come its core operations.