Question

Refer to this income statement to answer the question below.

Forks Gym

Income Statement

For the Month Ended August 31, xxxx
Revenue:

Membership Fees Revenue

Rental Revenue

Instruction Revenue

Total Revenue 15,000.00

3,000.00

4,000.00









22,000.00
Expenses:

Advertising Expense

Rent Expense

Utilities Expense

Total Expenses 2,000.00

4,000.00

1,000.00











7,000.00
Net Income 15,000.00
Forks Gym has a net income.

Responses

False
False

True

Answer 1

True.

Total revenue = 22,000 (15,000 + 3,000 + 4,000).
Total expenses = 7,000 (2,000 + 4,000 + 1,000).
Net income = 22,000 − 7,000 = 15,000, so the gym has net income.