MATH SOLVE

2 months ago

Q:
# 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

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