Asked by Jaydan MacMaster on Jul 16, 2024
Verified
During August 2016 Shelby's Supply Store generated revenues of $65000. The company's expenses were as follows: cost of goods sold of $33000 and operating expenses of $7000. The company also had rent revenue of $2000 and a loss on the sale of a delivery truck of $3000. Shelby's net income for August 2016 is
A) $25000.
B) $27000.
C) $24000.
D) $32000.
Net Income
The net financial gain or deficit for a company following the calculation of all income and outgoings.
Operating Expenses
Expenditures that a business incurs as a result of performing its normal business operations.
Rent Revenue
Income earned from leasing out properties or equipment.
- Comprehend the structure and the process of computing net income.
Verified Answer
SJ
Sheba JohnsonJul 17, 2024
Final Answer :
C
Explanation :
Net Income = Revenue - Expenses
= $65,000 (Revenue) - $33,000 (Cost of Goods Sold) - $7,000 (Operating Expenses) + $2,000 (Rent Revenue) - $3,000 (loss on the sale of delivery truck)
= $24,000. Therefore, the answer is C.
= $65,000 (Revenue) - $33,000 (Cost of Goods Sold) - $7,000 (Operating Expenses) + $2,000 (Rent Revenue) - $3,000 (loss on the sale of delivery truck)
= $24,000. Therefore, the answer is C.
Learning Objectives
- Comprehend the structure and the process of computing net income.