How is net income generally calculated on an income statement?

Net income is generally calculated on an income statement by taking the company's total revenue and subtracting all of its total expenses, which include costs of goods sold, operating expenses, interest expenses, taxes, and any other expenses. This calculation provides insight into a company's profitability during a specific period.

The selected choice captures the essence of this calculation, as it reflects the comprehensive nature of net income by acknowledging that both operating and non-operating expenses are deducted from total revenues. This ensures that net income represents the actual profit after all expenses have been accounted for, making it a key indicator of the financial health of a business.

The other options do not accurately represent the calculation of net income. For example, one option focuses only on operating income and interest income, which excludes other significant expenses like taxes and non-operating costs. Another option limits the scope to gross profit and tax expenses, missing multiple expense items essential for calculating net income. Lastly, the EBITDA minus depreciation calculation does not account for other relevant expenses such as interest and taxes, which further underscores the importance of using total expenses in the calculation of net income.