Question

What is x-cel company's net income or net loss if it had revenue of $1,800, salary expense of $500, utility expense of $250, and withdrawals of $1,000 during october?

Answer 1

Answer: Net income of $50

Step-by-step explanation:

• net income is the sum of a business's cost of goods sold, expenses, interest, taxes, depreciation, and amortization subtracted from total revenue
• net loss occurs when the sum of total expenses is greater than the total revenue generated by the company or business

Can be calculated by adding expenses and subtracting them from total revenue:

`500+250+1000 =` Total Expenses ($)

$1750 = Total expenses

$1800 > $1750

• As a result of the revenue being greater than expenses the company will experience a net income

Subtract total expenses from total revenue:

`1800-1750` = Net income

$50 = Net income