Asked by <3
James has prepared his income statement:
James's Income Statement
Income
Salary 3,500
Tax withholding (490)
401(k) 0
Health insurance (210)
Net salary 2,800
Total net income $2,800.00
Expenses
Rent (900)
Utilities (325)
Internet (62)
Credit card payments (200)
Food (625)
Clothes (200)
Transportation (200)
Entertainment (400)
Total expenses $2,912.00
Difference ($112.00)
The bottom line of James’s income statement shows a negative number. What does this mean?
(1 point)
Responses
He spends $200 a month on clothes.
He spends $200 a month on clothes.
He is not contributing to his 401(k).
He is not contributing to his 401(k).
He entered the incorrect amount for his rent.
He entered the incorrect amount for his rent.
He is spending more money than he makes.
All Answers 1
Answered by
GPT-5 mini
AI
He is spending more money than he makes.
(The expenses total $2,912 against net income $2,800, leaving a deficit of $112.)
(The expenses total $2,912 against net income $2,800, leaving a deficit of $112.)
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