Use the following to answer questions 62-65: During August 2016, Sal\'s Supply S

Question

Use the following to answer questions 62-65: During August 2016, Sal's Supply Store generated revenues of $30,000. The company's expenses were as follows: cost of goods sold of $12,000 and operating-expenscs.of $2,000. The company also had rent revenue of $500 and a gain on the sale of a delivery truck of $1,000. 62. Sal's gross profit for August 2016 is: A) $30,000. B) $19,000 $16,000levenua-Cost of gvods Sold D) $16,000. Page 16 63. Sal's non-operating income (loss) for the month of August, 2016 is: A) $0. B) $500. C) $1,000. D) $1,500. 64. Sal's operating income for the month of August, 2016 is: A) $30,000. B) $19,000. Rev -cost oh geeds -op ex D) $16,000. 65. Sal's net income for August, 2016 is: A) $18,000. B) $17,500. C) $16,500. D) $16,000.

Explanation / Answer

62. Answer is option C 18,000

Gross profit = revenue - cost of goods sold = 30000-12000=18000

63. Answer is option D 1,500

Non-operating income = rent revenue + gain on sale of delivery truck = 500+1000=1500

64. Answer is option D

Operating income = gross profit - operating expenses = 18000-2000=16000

65. Answer is option B 17500

Net income = operating income + non operating income = 16000+1500 =17500

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