How to calculate net income?



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Sir, am not able to calculate this. Could you please help?
Q: Assume that the net income of a company is Rs. 50 Crores. Now, if the company raise Rs. 20 crores in debt at 15% interest per annum, what will be the new net income?

1 Answer(s)


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The Net Income is calculated as Revenue - COGS - Operating Expense - Interest Expense.

So new interest expense is 15% x 20 crores = 3 crores

So new net income = 50-3 = 47 crores

Does this make sense