Question

Consider the following information:

Cash: $10,000
Sales Revenue: $45,000
Accounts Payable: $5,000
Rent Expense: $10,000
Wages Expense: $15,000
Utilities Expense: $2,000
What would be the net profit or loss?

Answer 1

Answer: $18,000

Step-by-step explanation:

Net Profit(Loss) is calculated by deducting expenses from revenue.

Net Profit (Loss) = Sales Revenue - Rent Expense - Wages Expense - Utilities Expense

= 45,000 - 10,000 - 15,000 - 2,000

= $18,000