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

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

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.

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The answer is c, because you subtract 18, and then divide by -3 and flip the sign.