The correct response is:
He is spending more money than he makes.
The negative difference of ($112.00) indicates that his total expenses exceed his net income, meaning he is in a deficit.
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 is spending more money than he makes.
He is spending more money than he makes.
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 spends $200 a month on clothes.
1 answer
1 answer