Income

Net Income or Net Loss

Net income or net loss is your firm's revenue minus its COGS, operating expenses and tax.

Dividing your net income/loss by the number of shares that your firm has issued will give you your firm's earnings per share (EPS), which is the major contributor to your share price. The higher your EPS gets the higher your share price will rise and vice versa.

Sales Revenue is the amount of money that you received for the bikes that your firm sold this year, i.e. wholesale price multiplied by the quantity sold.

Cost of Goods Sold (COGS) is the amount of money that it cost you to produce the bikes that your firm sold this year. For a more detailed calculation breakdown, see the COGM and Gross Margin report.

Gross Margin (gross profit), is how much your firm earned this year by making bikes and selling them. It excludes all other costs of operating your firm, except the manufacturing costs of the bikes you sold, e.g. it does not include advertising.

Operating Expenses are all of the other costs involved in operating your firm. This includes selling and distribution expenses, production management expenses, administration expenses and financial expenses.