Determine the net income of a company for which the following information is available for the month of September. $$\begin{array} { l r }
\text { Service revenue } & \$ 300,000 \
\text { Rent expense } & 48,000 \
\text { Utilities expense } & 3,200 \
\text { Salaries expense } & 81,000
\end{array}$$
A) $171,000.
B) $252,000.
C) $167,800.
D) $263,800.
E) $432,200.

Question

Determine the net income of a company for which the following information is available for the month of September. $$\begin{array} { l r } 
\text { Service revenue } & \$ 300,000 \
\text { Rent expense } & 48,000 \
\text { Utilities expense } & 3,200 \
\text { Salaries expense } & 81,000
\end{array}$$
A) $171,000.
B) $252,000.
C) $167,800.
D) $263,800.
E) $432,200.

Quizplus · Accepted Answer

The net income can be calculated by subtracting the total expenses from the total revenue. From the provided information, the total revenue is $870,000 ($630,000 + $240,000) and the total expenses are $702,200 ($315,000 + $132,000 + $25,000 + $200,000 + $30,000). Therefore, the net income is $167,800 ($870,000 - $702,200).

Determine the Net Income of a Company for Which the Following