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Therefore, Mr. X will report $70,000 as his net operating income, not $25000 ($70,000- $45000). Let us understand the concept of net operating income theory in depth with the help of an example. For instance, suppose you paid $300,000 in cost of goods sold, $15,000 in wages, $25,000 in Rent, $4,000 in utilities, $1,500 in interest and $28,000 in income taxes. Some of the examples of operating expenses are Salary & Wages, Raw material cost, Power & fuel, Rent, utilities, Freight and postage, and advertising. Operating expenses include all the costs or expenses which are directly related to the business activity. The NOI accounts for operating expenses and provides a clearer picture of an asset’s true profitability than the GOI. An up-to-date income statement https://sextiendaperu.com/undergraduate-tuition-and-fees-2/ is just one of the financial reports small business owners gain access to through Bench. If Wyatt wants to calculate his operating net income for…