How to Calculate a Corporation's Gross Income
Original post by Charlotte Johnson of Demand Media
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.
Add all revenue received from the sales of goods and services directly related to the corporation.
Add any money made from interest or dividends.
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.
Calculate the overall total by adding the totals from the first three steps.
- Internal Revenue Service; Business Income and the Tax Gap; June, 2006
- Alabama Department of Revenue: Gross Income of Corporations Defined
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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