Business Income Statements Answers

Which would NOT be included on an income statement for the Best Brand Company? a. Projected Profit b. Net Sales c. Cost of Goods d. Operating Expenses Please select the best answer from the choices provided

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 RevenueSales:$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 ExpensesWages:$1,460 Rent:$650 Utilities:$185 Advertising:$90 Taxes:$125 Total Operating Expenses: Net Income:a.$2,320b.$2,510c.$4,830d.$6,610

Gross profit will always be _____ net income.a.equal tob.less thanc.greater thand.unrelated to

Because of his business's recent success, Sam has decided to expand his Sam's Swimming Pool Cleaning to include another branch. This will add expenses for another office and payroll for five more employees, but Sam's customer base will stay the same, at least for a while. Until Sam's new branch starts bringing in new customers, how will this change affect Sam's gross profit margin?a.An added expense of a new branch has nothing to do with Sam's gross profit margin.b.Since the new branch is adding expenses, Sam's gross profit margin will go down.c.Since the new branch is adding expenses, Sam's gross profit margin will go up.d.Since the expense the new branch is adding is negligible, Sam should see no change in his gross profit margin.

Because of his business's recent success, Sam has decided to expand his Sam's Swimming Pool Cleaning to include another branch. This will add expenses for another office and payroll for five more employees, but Sam's customer base will stay the same, at least for a while. Until Sam's new branch starts bringing in new customers, how will this change affect Sam's net profit margin?a.An added expense of a new branch has nothing to do with Sam's net profit margin.b.Since the new branch is adding expenses, Sam's net profit margin will go down.c.Since the new branch is adding expenses, Sam's net profit margin will go up.d.Since the expense the new branch is adding is negligible, Sam should see no change in his net profit margin.

Which of the following equations correctly describes how to calculate net income?a.net income = (cost of goods sold) - (net sales) - (operating expenses)b.net income = (operating expenses) - (cost of goods sold) - (net sales)c.net income = (operating expenses) + (cost of goods sold) - (net sales)d.net income = (net sales) - (cost of goods sold) - (operating expenses)

Sam’s Swimming Pool Cleaning has an annual gross profit of $88,400. Sam charges $25 per week for each of his customers for 52 weeks. His annual operating expenses, including labor and supplies, are $48,000. How many customers does Sam’s Swimming Pool Cleaning have? a. 17 b. 35 c. 105 d. 68 Please select the best answer from the choices provided

At Sam’s Swimming Pool Cleaning, Sam charges each of his 85 customers $25 per week for 52 weeks of service every year. Since pool cleaning is a service, it has no cost other than labor and supplies, which cost Sam $48,000 each year. Calculate Sam’s annual gross profit. a. $2,125 b. $4,420 c. $62,500 d. $110,500 Please select the best answer from the choices provided

Last year, Sam’s Swimming Pool Cleaning had a gross profit of $105,355 and net income of $72,010. Calculate Sam’s operating expenses for last year. a. $3,335 b. $33,345 c. $17,734 d. $177,345 Please select the best answer from the choices provided

At his comic book store, Korey’s Comics, Korey sells approximately $3,250 in comic books each month. But as a comic book dealer, Korey only pays $1,285 for these comic books. Korey’s monthly operating expenses, including labor, are $875. Calculate Korey’s monthly net income.a.$1,090b.$1,965c.$2,375d.$2,840