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. Shelby's net income for August,2020 is

Question

Quizplus · Accepted Answer

Net income is calculated by subtracting total expenses from total revenues. Shelby's total expenses are $33,000 (cost of goods sold) + $7,000 (operating expenses) = $40,000. Therefore, net income is $65,000 (revenues) - $40,000 (total expenses) = $25,000.

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