Below is last month's business income statement for Korey's Comics. Using the information provided in the statement, determine net income for Korey's Comics last month. Korey?s Comics Monthly Business Income Statement Revenue Sales: $6,825 Returns: $215 Net Sales: Cost of Goods Sold Beginning Inventory: $780 Purchases: $1,795 Goods Available for Sale: Ending Inventory: $795 Total Cost of Goods Sold: Gross Profit:: Operating Expenses Wages: $1,460 Rent: $650 Utilities: $185 Advertising: $90 Taxes: $125 Total Operating Expenses: Net Income: a. $2,320 b. $2,510 c. $4,830 d. $6,610
Accepted Solution
A:
The Answer is A) 2,320. Here is how we arrive at that number: Net Sales = Revenue - Returns = 6,825 - 215 = 6610 COGS = Beg Inv + Purch - Ending Inv = 780 + 1,795 - 795 = 1780 Gross Profit = Net Sales - COGS = 6610 - 1780 = 4830
OP Expenses:
Wages
1,460.00
Rent
650.00
Utilities
185.00
Advert
90.00
Tax
125.00 Total Operating Expenses: 2,510
Net Income = Gross Profit - Operating Expenses = 4,830 - 2510 = 2320 Net Income: 2,320