Based on this information, is Scott Industries profitable? Explain your answer.

($165,000 Fees earned + $3,000 Interest revenue) − ($40,000 Salaries & wages expense + $44,000 Selling expenses + $18,000 Income taxes expense + $20,000 Rent expense) = $46,000 Net income
Scott Industries had net income for the period of $46,000. Since revenues exceeded expenses for the period, the company would be considered profitable.