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How profit works: SALES - EXPENSES = NET INCOME The revenue generated (sales minus all costs incurred (expenses) equals the company's net income (profit). OPERATING REVENUES Sales from the company's core business operations, such as product sales or service fees. NON-OPERATING REVENUES Income from sources outside the core business, like interest income or investment gains. EXPENSES OPERATING EXPENSES Costs directly associated with running the business, including wages, rent, utilities, ...

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