Answer:
Net profit and
Explanation:
Net profit represents the number of sales dollars remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company's total revenue. Net profit is also referred to as the bottom line, net income, or net earnings. The net loss is the amount of money the company lost during the period. This is the negative amount of cash that is left over after all the expenses have been paid during the period. If total revenues were greater than total expenses, the company would have net income instead of net loss. Net profit is one of the most closely followed numbers in finance, and it plays a large role in ratio analysis and financial statement analysis. Shareholders look at net profit closely because it is the source of compensation to shareholders of the company, and if a company cannot generate enough profit to compensate owners, the value of shares will plummet. Conversely, if a company is healthy and growing, higher stock prices will reflect the increased availability of profits.
