The Net Income of a business entity is a measure of the profitability of that business. Net Income is calculated as the total comprehensive income of the business entity less the cost of goods sold, general and administrative expenses, depreciation and amortisation, financing cost (interest), and current taxes. Simply put, net income is the total sum of all income sources less all expenses and taxes. In business valuation analytical work, past net incomes are normally normalised through a review and adjustment of income and cost items to realistic levels and also taking out all extraordinary items. This leads to the “normalisation’ and restatement of the income statements which informs the business valuation process and the reach of more realistic conclusion of value.