What Is Net Income?

Net income (English name: Net Income (NI)) The total profit of a person or a company, that is, the income or income balance of an individual or company after the total income minus business costs, taxes and other expenses.

Net income

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Example 1: Our company A exports Singapore Company B's goods. The total price is US $ 80,000 from CIF Singapore. The sea freight from Shanghai to Singapore is US $ 3,800, and the insurance fee is US $ 176. Calculate the exchange cost of the goods (results with two decimal places).

Solution: The net income from export sales is determined by the FOB price of the export commodity

Net Revenue from Export Sales = 80,000-Freight-Insurance

= 80,000-3800-176 = 76024 (USD)

Exchange cost = 580,000 ÷ 76024 = 7.63

Net foreign exchange income from export sales (foreign exchange)

A: The exchange cost of the goods is 7.63 yuan for one dollar.

Continuing the question, if the exchange rate on the day of foreign exchange collection is 100 US dollars for 800.00 / 803.90 renminbi, try to calculate the profit and loss rate of the export commodity (the result will retain two decimal points).

Solution: The net RMB sales revenue from export sales is converted from the FOB price of the export commodity to RMB at the then foreign exchange rate

Net RMB sales from export sales = 76024 × 8.00 = 608,192.00 (RMB)

(RMB net income from export sales-total export cost) / total export cost × 100% = profit and loss ratio of export goods

= (608,192.00580,000) ÷ 580,000 × 100% = 4.86%

Answer: The profit and loss ratio of export commodities is 4.86%.

Example 2: A company imports 22,600 US dollars per metric ton FOB Shanghai for raw materials, and the FOB Shanghai price of processed products is US $ 117.52 per dozen. It is known that 250 dozen finished products per metric ton of raw materials can be processed. Try to calculate its export exchange rate .

Solution: Net foreign exchange earnings from finished product exports = 117.52 x 250 = 29380 (USD)

= (29,38022,600) ÷ 22,600 × 100% = 30%

A: The export exchange rate is 30%.