Using the following information, what is the amount of net income? Purchases $ 33,189 Selling expenses $ 758 Merchandise inventory, September 1 7,436 Merchandise inventory, September 30 8,978 Administrative expenses 760 Sales 51,684 Rent revenue 832 Interest expense 1,152 a.$20,503

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Business

Tianna Kline

15 November, 00:27

Using the following information, what is the amount of net income? Purchases $ 33,189 Selling expenses $ 758 Merchandise inventory, September 1 7,436 Merchandise inventory, September 30 8,978 Administrative expenses 760 Sales 51,684 Rent revenue 832 Interest expense 1,152 a.$20,503

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Answers (1)

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Clark Vazquez · Answer 1

Net income = $18,199

Explanation:

Giving the following information:

Purchases $ 33,189 Selling expenses $ 758 Merchandise inventory, September 1 7,436 Merchandise inventory, September 30 8,978 Administrative expenses 760 Sales 51,684 Rent revenue 832 Interest expense 1,152

Sales = 51,684

COGS = (beginning inventory + purchase - ending inventory) = (7,436 + 33,189 - 8,978) = 31,647 (-)

Gross profit = 20,037

Administrative expense = 760 (-)

Selling expense = 758 (-)

Interest expense = 1,152 (-)

Rent revenue = 832

Net income = $18,199