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How to Calculate a Corporation's Gross Income

Original post by Charlotte Johnson of Demand Media

Gross income is not limited to cash only.

A company's gross income is the total amount of revenue that it receives over a specific period of time. This is in contrast to the net income, which is the amount of income after deductions and taxes have been subtracted. Calculating a corporation's gross income is a process of adding all forms of payments over a time period. This calculation is important in terms of analyzing financial health, budgeting and paying taxes.

Step 1

Add all revenue received from the sales of goods and services directly related to the corporation.

Step 2

Add any money made from interest or dividends.

Step 3

Add income directly related to the company that is accumulated from rent, bartering, canceled debts, promissory notes, damages, lost income payments, and economic injury payments.

Step 4

Calculate the overall total by adding the totals from the first three steps.

                   

References

About the Author

Charlotte Johnson is a musician, teacher and freelance writer with a master's degree in education. Johnson has written numerous articles for various websites. She has covered a wide range of topics including health, education, the arts, animals and parenting.

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