Determine the net income of a company for which the following information is available for the month of July.
$\begin{array}{llr}
\text { Employee salaries expense} &\$180,000\
\text {Interest expense } &10,000\
\text { Rent expense } &20,000\
\text { Consulting revenue } &400,000\
\end{array}$

Question

Determine the net income of a company for which the following information is available for the month of July.
$\begin{array}{llr}
  \text {  Employee salaries expense} &\$180,000\
 \text {Interest expense  } &10,000\
 \text { Rent expense } &20,000\
 \text { Consulting revenue } &400,000\
\end{array}$

Quizplus · Accepted Answer

Net income is calculated by subtracting total expenses from total revenues. Here, total expenses are $180,000 (Employee salaries) + $10,000 (Interest expense) + $20,000 (Rent expense) = $210,000. Consulting revenue is $400,000. So, net income = $400,000 - $210,000 = $190,000.

Determine the Net Income of a Company for Which the Following