Below is last month's business income statement for Korey's Comics. Using the information provided in the statement, determine n
et 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
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
to find the slope, we have to use the formula y2-y1 over x2-x1. Now, plug in our values; 8-28 over 6-18. Our answer becomes -20 over -12 this simplifies to 5 over 3, and there's your answer.
