Question

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


Please select the best answer from the choices provided

A
B
C
D
Mark this and return

Answer 1

A

Work shown briefly:
- Net Sales = 6,825 − 215 = 6,610
- COGS = (780 + 1,795) − 795 = 1,780
- Gross Profit = 6,610 − 1,780 = 4,830
- Operating Expenses = 1,460 + 650 + 185 + 90 + 125 = 2,510
- Net Income = 4,830 − 2,510 = 2,320