Use the information given below to answer the following questions:
$$\begin{array} { l r }
&\$\
\text { Cash sales } & 20000 \
\text { Credit sales } & 60000 \
\text { Cash received from accounts receivable } & 42000 \
\text { Wages paid } & 10000 \
\text { Wages owing at year-end } & 8000
\end{array}$$
-What is the net profit for 2012?
A) $70 000
B) $62 000
C) $104 000
D) $112 000.

Question

Use the information given below to answer the following questions:
$$\begin{array} { l r } 
&\$\
\text { Cash sales } & 20000 \
\text { Credit sales } & 60000 \
\text { Cash received from accounts receivable } & 42000 \
\text { Wages paid } & 10000 \
\text { Wages owing at year-end } & 8000
\end{array}$$
-What is the net profit for 2012?
A) $70 000
B) $62 000
C) $104 000
D) $112 000.

Quizplus · Accepted Answer

Net profit is calculated as total sales minus total expenses. Total sales are $80,000 ($20,000 cash sales + $60,000 credit sales). Total expenses are $18,000 ($10,000 wages paid + $8,000 wages owing). Therefore, net profit is $80,000 - $18,000 = $62,000.

Use the Information Given Below to Answer the Following Questions