The total revenues for a company are $150,223 and the total expenses were 125,766. If you are calculating the net income, which of these spreadsheets would you use?

Question

Responses

Insert a spreadsheet with $150,223 in cell B2 and 125, 766 in cell B3. Enter a formula =B2/B3. The formula should be showing in the formula bar.
Insert a spreadsheet with $150,223 in cell B2 and 125, 766 in cell B3. Enter a formula =B2/B3. The formula should be showing in the formula bar.

Insert a spreadsheet with $150,223 in cell B2 and 125, 766 in cell B3. Enter a formula =B2+B3. The formula should be showing in the formula bar.
Insert a spreadsheet with $150,223 in cell B2 and 125, 766 in cell B3. Enter a formula =B2+B3. The formula should be showing in the formula bar.

Insert a spreadsheet with $150,223 in cell B2 and 125, 766 in cell B3. Enter a formula =B2*B3. The formula should be showing in the formula bar.
Insert a spreadsheet with $150,223 in cell B2 and 125, 766 in cell B3. Enter a formula =B2*B3. The formula should be showing in the formula bar.

Insert a spreadsheet with $150,223 in cell B2 and 125, 766 in cell B3. Enter a formula =B2-B3. The formula should be showing in the formula bar.

Answer 1

To calculate the net income, you need to subtract total expenses from total revenues. Therefore, you should use the following spreadsheet setup:

Insert a spreadsheet with $150,223 in cell B2 and $125,766 in cell B3. Enter a formula =B2-B3. The formula should be showing in the formula bar.

This formula will give you the correct net income.