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Below is last month's business income statement for Korey's Comics. Using the information provided in the statement, determine net income for Korey's Comics last month. Korey?s Comics Monthly Business Income Statement Revenue Sales: $6,825 Returns: $215 Net Sales: Cost of Goods Sold Beginning Inventory: $780 Purchases: $1,795 Goods Available for Sale: Ending Inventory: $795 Total Cost of Goods Sold: Gross Profit:: Operating Expenses Wages: $1,460 Rent: $650 Utilities: $185 Advertising: $90 Taxes: $125 Total Operating Expenses: Net Income: a. $2,320 b. $2,510 c. $4,830 d. $6,610

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pmayl
The Answer is A) 2,320. Here is how we arrive at that number:
Net Sales = Revenue - Returns = 6,825 - 215 = 6610
COGS = Beg Inv + Purch - Ending Inv = 780 + 1,795 - 795 = 1780
Gross Profit = Net Sales - COGS = 6610 - 1780 = 4830

OP Expenses:
Wages     1,460.00
Rent         650.00
Utilities     185.00
Advert      90.00
Tax          125.00
Total Operating Expenses: 2,510

Net Income = Gross Profit - Operating Expenses = 4,830 - 2510 = 2320
Net Income: 2,320
abiolataiwo2015

Based on the information given the net income is $2320.

Net income

Using this formula

Net Income = Gross Profit - Operating Expenses

Where:

Net Sales = Revenue - Returns

Net sales=$6,825 -$215

Net sales=$6610

Cost of goods sold= Beginning Inventory + Purchase - Ending Inventory

Cost of goods sold =$780 + $1,795 - $795

Cost of goods sold=$1780

Gross Profit = Net Sales - Cost of goods sold

Gross profit =$6610 - $1780

Gross profit=$4830

Operating Expenses:

Wages     $1,460

Rent         $650

Utilities     $185

Advert      $90

Tax          $125

Total Operating Expenses $2,510

Let plug in the formula

Net income=$4,830 - $2510

Net income=$2320

Inconclusion the net income is $2320.

Learn more about net income here:https://brainly.com/question/15530787

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