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# Net|Definition & Meaning

## Definition

The phrase **net** is quite a common word and is seen to be used in almost every other sentence. It is also used as a **prefix** to add quality to a noun. In **mathematics** and science, the **net** is sometimes used as a sum or mean of a set of data or as a pattern that can be folded to form a **3d** shape. Here we will discuss **net** **income** and **net** of a **geometrical** shape in detail.

**Net IncomeÂ **

Net **income** or **net** money is the total amount of **money** or payment left after all the deductions are **assembled**. Net money refers to the profit amount excluding all the expenditures from the earnings such as sales of **goods**, **taxes**, **wages**, **depreciation**, **interests**, **general** **expenses**, operating expenses, etc. Net **income** makes it easy for investors to have a check and balance on the companyâ€™s profitability and manage the **income** efficiently.

Particularly, in commerce, **net** **income** refers to the amount remaining after removals and lessenings are made. But for an individual, **net** **income** is the payment that he earns after deducting **taxes**, health **insurance**, **allowance**, and all the other benefits.

**Net Income vs. Gross Income **

- Gross
**income**is the total revenue that a company earns without making any deductions and**net****income**is the profit earned excluding all expenses. - A business’s
**net****income**is its total profit in a particular period whereas gross**income**is equal to the total sales made at the same time. - Gross
**income**allows owners and managers to track their sales and services growth whereas**net****income**helps measure a companyâ€™s profit margin. - Net
**income**is important for owners as it provides acknowledgment about how to get a considerable sum of earnings and profits. butÂ**Gross****income**is important to track the companyâ€™s sales magnitude. - Net
**income**is more inclusive than gross**income**.

### What Are the Benefits of Net Income?

- It provides an overview of the companyâ€™s performance over the years.
- It helps to manage the
**company’s****profitability**ratio. - It is a good indicator of knowing how
**prosperous**a business is. - It provides
**financial****data**needed by investors. - It provides a good insight into whether a company will remain
**successful**. - Net
**income**shows the solid earnings of the company after all the expenses.

### How To Calculate Net Income

- First calculate gross
**income**by finding**revenue**,**COGs**, and**expenses**. Revenue represents the total sales of a company in a period and**COGs**stands for cost of goods .it includes direct material costs, wages, repairing**expenditures**, shipping outlay,**production****facilities**, and many more. - Now calculate operating expenses and subtract them from gross
**income**. This gives us operating**income**.

Operating **expenses** include rent, utilities, wages, taxes, maintenance, repairs, depreciation, and property taxes.

- Deduct non-operating
**expenses**the expenses inapplicable to the companyâ€™s direct**activities**and**operations**. - Add any non-operating
**income**. This is the gain derived from sources other than from**products**or services. for example, dividends paid to the company. - Subtract taxes.
- The result is the
**net****income**.

Let us consider an example of the **net** **income** of a candy company. This small business had sales of **\$18,750,000** during the quarter. The cost of manufacturing the candy was **\$9,875,000,** leaving a gross **income** of \$8,875,000. The companyâ€™s **operating** expenses came to \$3,125,000, resulting in an **operating** **income** of \$5,750,000. The owners subtracted \$375,000 in interest expenses and added \$425,000 in interest **income**, yielding a **net** **income** before taxes of \$5,800,000. All the taxes of \$1,875,000 were subtracted, and the company was left with a **net** **income** of \$3,925,000.

Sales or revenue = \$18,750,000

Cost of goods sold = \$9,875,000

Gross **income** = \$8,875,000

Operating expenses = \$3,125,000

Operating **income** = \$5,750,000

non-operating expenses = \$375,000

Gross **income** minus expenses = \$425,000

non-operating **income **= \$5,800,000

Net **income** before taxes = \$1,875,000

taxes = \$1,875,000

**net** **income** = \$3,925,000

**Other Names of Net IncomeÂ **

Other names for **net** **income** are as follows

- Net profit
- Net
**income**after taxes **Net earnings**- Bottom line
**Net pay**- Take-home
**income** - Net wages
- Taxable
**income**

**Net in GeometryÂ **

Net in **geometry**(also known as geometric **net**) is defined as a 2-dimensional pattern of any geometric figure that can be molded into a 3-dimensional solid figure. Net shows us what a 3-**dimensional** geometric figure will look like if its ends are flattened and laid out and all the faces are visible. 3-**dimensional** figures can be made by folding nets.

**Net of a CubeÂ **

A cube is a 3-**dimensional** figure having 6 square faces, 8 vertices, and 12 edges. Each square face has the same side length and same size.

Surface area of cube= 6a^{2}

**Net of CuboidÂ **

A cuboid is a 3-**dimensional** shape having 6 rectangular faces,8 vertices, and 12 edges. the only difference between a **cuboid** and a cube is that a cube has **square** faces whereas all the faces of a **cuboid** are **rectangular**.

Surface area of cuboid = 2(length * width) + 2(length * height) + 2(height * width)

**Net of a Square-based Pyramid **

A pyramid is a 3-**dimensional** shape having a base and **triangular**-shaped sides that meet at the top. The point where the **sides** meet is called the **apex**. The base of the **pyramid** is a **polygon**. The **triangular** faces are called **lateral** **faces**.

Surface area of the pyramid = base area + lateral area

**Net of a coneÂ **

A cone is a 3-**dimensional** **geometric** figure having a **circular** base and curved surface **pointed** towards the top called the **apex**. A cone has 2 **faces, a vertex, and an edge.**

Surface area of cone = $\mathsf{\pi r(r+\sqrt{r^2+h^2})}$

**Net of a Cylinder**

A cylinder is a 3-**dimensional** **geometric** shape having two circular parallel bases connected by a curved surface. The distance between two circular bases is called the height of the **cylinder**. A cylinder has 2 flat faces, 1 round face, a total of **2 edges, and contains no vertices**.

Surface area of cylinder = 2Ï€r(h+r)

**Solved Examples**

### Example 1

For the given **pyramid**, what would be its surface Area?

### Solution

From the figure:

Height = 12cm

Length = 5 cm

To find the area of the **pyramid**, first, we need to find the area of a **square** and the area of a **triangle**.

Area of **square** = a^{2}

= 5^{2}

= 25 cm^{2}

Area of **triangle** = 0.5 * (length * height)

= 0.5(12 * 5)

= 30 cm^{2}

Surface area of **pyramid** = area of **square** + 4(area of a **triangle**)

= 25 + 4(30)

= 145 cm^{2}

Hence, the square-based **pyramid** has a surface area of 145 cm^{2}.

### Example 2

For the given **cylinder**, what would be its surface area?

### Solution

Surface area of **the cylinder** = area of **the circle** + area of **the rectangle**

The area of the circle is $\pi$ r^{2}, but as we have 2 circles, we multiply it by 2:

Area of circles = 2$\pi$r^{2}

= 2$\pi$(8^{2})

= 2$\pi$(64)

= 128$\pi$ cm^{2}

Now, let us find the **circumference** of a **circle** to use it as the length of the rectangle:

**Circumference** = 2$\pi$r

= 2$\pi$ * 8

= 16$\pi$ cm^{2}

Area of **rectangle** = length * width

= 16$\pi$ * 18

= 288$\pi$ cm^{2}

Since:

Surface area of the cylinder = area of the circle + area of the rectangle

= 416$\pi$ cm^{2}

Hence, the surface area of **the cylinder** is 416$\pi$ cm^{2}.

*All images/mathematical drawings were created with GeoGebra.*