How to calculate net income before taxes

By pbrennan040

  • Step 1: Calculating the Gross Profit

    Total Revenue - Cost of Goods Sold = Gross Profit

  • Step 2: Calculate the Operating Expenses

    Salary + Rent + Utilities + Depreciation + Interest = Operating Expenses

  • Step 3: Calculate the Net Income before taxes

    Gross Profit - Total Operating Expenses = Net Income before taxes