What does the equation for determining net income include?

The correct determination of net income is fundamentally based on the concept that net income reflects a company's profitability after all expenses have been deducted from total revenue. The appropriate equation that captures this is to start with total revenue and then subtract the costs associated with generating that revenue, which includes the cost of goods sold (COGS) and operating expenses. Additionally, taxes must also be factored into the calculation, as they represent a significant cost that impacts the final net income.

Thus, the correct equation, which encompasses all necessary deductions, is: net income equals revenue minus the cost of goods sold, minus operating expenses, and minus taxes. This leads to a clear picture of how profitable a company is over a defined period, considering all necessary costs associated with its operations and tax obligations.

Considering other options, they either inaccurately represent the components of the net income calculation, such as including gross profit without a complete picture of expenses or incorporating unrelated figures like dividends, which do not belong in the net income calculation. Therefore, option C best reflects the proper formula to arrive at net income.