Question

Refer to this income statement to answer the question below.

Forks Gym

Income Statement

For the Month Ended March 31, xxxx
Revenue:

Membership Fees Revenue

Rental Revenue

Instruction Revenue

Total Revenue 5000.00

2000.00

4000.00









11000.00
Expenses:

Advertising Expense

Rent Expense

Utilities Expense

Total Expenses 1000.00

2000.00

500.00











3500.00
Net Income 7500.00
Forks Gym has a net income.

Responses

False
False

True

Answer 1

True.

Total revenue = $11,000 and total expenses = $3,500, so net income = $11,000 − $3,500 = $7,500 (positive).