Question

Owner investment: $8,000

Revenue: $15,000
Equity: $21,000
Expenses: $3,000

Based on this data, the net profit or loss on the income statement should be:

Answer 1

Answer: $12,000

Explanation:

The Income statement shows the Net Profit or Loss for a company in a given period. That Net income is calculated by subtracting expenses from the revenue for the period:

= Revenue - Expenses

= 15,000 - 3,000

= $12,000