The Income Statement is a crucial financial document that summarizes a company's revenues, expenses, and net income or loss over a specific period. Net Income is calculated by subtracting total expenses from total revenues, and it appears as the final line item on the Income Statement. This figure is vital for assessing a company's profitability, as it indicates how much profit the company has made after all costs have been accounted for. Investors and analysts closely examine this statement to evaluate the financial health and performance of a business.