Using the following information, what is the amount of net income??? $$\begin{array} { | l | r | l | l | r | }
\hline \text { Purchases } & \$ 32,000 && \text { Selling expenses } & \$ 960 \
\hline \begin{array} { l }
\text { Merchandise inventory, } \
\text { September 1 }
\end{array} & 5,700 & & \begin{array} { l }
\text { Merchandise inventory, } \
\text { September 30 }
\end{array} & 6,370 \
\hline \text { Administrative expenses } & 910 & & \text { Sales } & 63,000 \
\hline \text { Rent revenue } & 1,200 & & \text { Interest expense } & 1,040 \
\hline
\end{array}$$
A) $29,800
B) $29,960
C) $28,760
D) $31,670

Question

Using the following information, what is the amount of net income??? $$\begin{array} { | l | r | l | l | r | } 
\hline \text { Purchases } & \$ 32,000 && \text { Selling expenses } & \$ 960 \
\hline \begin{array} { l } 
\text { Merchandise inventory, } \
\text { September 1 }
\end{array} & 5,700 & & \begin{array} { l } 
\text { Merchandise inventory, } \
\text { September 30 }
\end{array} & 6,370 \
\hline \text { Administrative expenses } & 910 & & \text { Sales } & 63,000 \
\hline \text { Rent revenue } & 1,200 & & \text { Interest expense } & 1,040 \
\hline
\end{array}$$
A) $29,800
B) $29,960
C) $28,760
D) $31,670

Quizplus · Accepted Answer

The net income can be calculated as Total Revenue - Total Expenses. Total Revenue is $80,000 and Total Expenses are $50,040. Therefore, Net Income = $80,000 - $50,040 = $29,960. Hence, the answer is option B.

Using the Following Information, What Is the Amount of Net