Larry's Kite Shack operates on the Florida beaches during the tourist season.Last year, Larry sold $25,000 worth of kites.His cost of goods was $7,000, and he paid himself a salary of $20,000.On an income statement, Larry's business would have a(n):

Question

Quizplus · Accepted Answer

Larry's business would have a net loss because his total expenses ($7,000 cost of goods + $20,000 salary) amount to $27,000, which exceeds his sales revenue of $25,000.

Larry's Kite Shack Operates on the Florida Beaches During the Tourist