The net income of the enterprise is the difference between the total cost of production and the selling price. It is the main source of revenue for the state budget and the monetary balance of the enterprise. Net income is part of the gross income of the organization remaining after the payment of wages. The net income of the industrial national economy is a combination of profit and value-added tax, although in different sectors they represent different forms. In the heavy industry, the main source of income is profit, while in the light industry the turnover tax prevails.
Before calculating the net income of the enterprise, it is necessary to determine the potential income and accurate calculations of the costs of the enterprise. Net income - this is a very important indicator in accounting, it is from it that you can calculate the value stated in the offer to purchase. Calculating it is quite simple, it is enough to subtract the number of expenses from the total income. It’s good if this number is with a plus sign, and the more the better. The net income of the company acts as an additional product and is part of the national income. Moreover, the division of national income into surplus product and necessary is a mandatory economic aspect, regardless of the methods of social production. Net operating income is the income of the enterprise for the year that brings property on its balance sheet (for example, from renting it out or from using it by others), minus the costs of its maintenance.
In capitalism, the net product appears as a kind of surplus product with surplus value. Net income, according to Karl Marx, is a by-product of the exploitation of workers. The redistribution process divided the net income of capitalist society into two main monetary forms - profit and rent. Net income in a socialist society is not surplus value, but as a derivative of a surplus product, it is used for the needs of the whole society. It follows that the net income of a socialist society consists of a combination of the net income of cooperative-collective farm activity and the net income of state or public activity. At the same time, the public sector represents net income in cash in the form of profit from enterprises and value added tax, while the cooperative collective farm sector can have net income not only in cash but also in kind.
Net centralized government revenue represents payments from state-owned enterprises, value added tax and social security contributions. At the same time, cooperative and collective farm enterprises make their feasible contribution to the centralized fund in the form of insurance contributions and income tax. Net centralized income goes to state expenses in the planned manner for the needs of citizens (financing the national economy, covering the costs of the army and management, the formation of public and reserve funds). Part of the money received by the state treasury is spent on reimbursement of production costs - electricity, used raw materials, semi-finished products. In such economic conditions, the rest of the revenue is nothing more than gross income. The gross income of the enterprise is a source of creating financial resources of extrabudgetary funds and the state budget, and not just industrial enterprises.
The net present value of an enterprise is the aggregate of all enterprise income by a certain number, minus all maintenance costs, taxes and other financial expenses.