During August 2020, Shelby's Supply Store generated revenues of $65,000. The company's expenses were as follows: cost of goods sold of $33,000 and operating expenses of $7,000. The company also had rent revenue of $2,000 and a loss on disposal of plant assets of $3,000. Shelby's net income for August 2020 is

Question

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Net income is calculated as total revenues minus total expenses. Total revenues are $65,000 (sales revenue) + $2,000 (rent revenue) = $67,000. Total expenses are $33,000 (cost of goods sold) + $7,000 (operating expenses) + $3,000 (loss on disposal) = $43,000. Net income is $67,000 - $43,000 = $24,000.

During August 2020, Shelby's Supply Store Generated Revenues of $65,000