Business Income Statements Answers

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

Jim had a very good quarter at his car lot with net sales reaching just over $456,000. This created a net income of $195,000. If Jim's operating expenses last quarter were $23,000, what was his gross profit margin?a.5.0%b.37.7%c.42.8%d.47.8%

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

Bill owns a company (Bill’s Gates) that manufactures fence panels. Bill’s Gates had a net profit margin last quarter of 18%. Which of the following actions will not help Bill increase his net profit margin this year, assuming he sells the same number of fence panels?a.Increase the price per panel.b.Use cheaper lumber to construct panels. c.Offer panels in a “buy one get one free” special.d.Reduce workforce and labor costs to construct panels.

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

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

Business at Korey’s Comics has been good, and Korey expects the same business next month. However, due to an increase in business, Korey has made the decision to bring on an extra hand to help run the store in the afternoons. The new employee will make $435 per month. How does this change affect Korey’s monthly net income?a.Korey’s monthly net income will be $435.b.Korey’s monthly net income will increase by $435.c.Korey’s monthly net income will decrease by $435.d.Korey’s monthly net income will not be affected by the change.

Which of the following statements best describes the difference between net income and gross profit?a.Gross profit considers operating expenses while net income does not.b.Net income considers operating expenses while gross profit does not.c.Gross profit deducts taxes while net income does not. d.Net income deducts taxes while gross profit does not.

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

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