Question

Determine the net income of a company for which the following information is available for the month of July. Employee salaries expense $ 190,000 Interest expense 20,000 Rent expense 30,000 Consulting revenue 440,000

Answer 1

Net Income - July = $200000

Step-by-step explanation:

The Net Income is the difference between the revenue and all of the expenses. It is calculated by deducting the cost of sales and other operating and financing expenses from the revenue. The formula to calculate net income is,

Net Income = Revenue - Expenses

Net Income - July = 440000 - (190000 + 20000 + 30000)

Net Income - July = $200000