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17 December, 17:31

Using the following information, what is the amount of net income? Purchases $ 33,114 Selling expenses $ 677 Merchandise inventory, September 1 7,740 Merchandise inventory, September 30 11,372 Administrative expenses 665 Sales 50,575 Rent revenue 1,118 Interest expense 1,152 a.$31,089 b.$22,021 c.$11,977 d.$19,717

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  1. 17 December, 17:49
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    The net income is $32,961

    Explanation:

    To calculate the net income, we will classify the transaction into income and expenses, and compute the difference between their totals;

    Income;

    Merchandise inventory Sept. 1 = $ 7,740

    Merchandise inventory Sept. 30 = $ 11,372

    Sales = $ 50,575

    Total = $ 69,687

    Expenses;

    Purchases = $ 33,114

    Selling expenses = $ 677

    Administrative expense = $ 665

    Rent Revenue = $ 1,118

    Interest expense = $ 1,152

    Total = $ 36,726

    Net income = Total income - Total expenses

    = 69,687 - 36,716

    = $ 32,961
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