question 3\ndetermine the net income of a company for which the following information is available for the…

question 3\ndetermine the net income of a company for which the following information is available for the month of july.\nemployee salaries expense $185,000\ninterest expense $15,000\nrent expense $25,000\nconsulting revenue $420,000\n$195,000\n$245,000\n$225,000\n$645,000\n$420,000

question 3\ndetermine the net income of a company for which the following information is available for the month of july.\nemployee salaries expense $185,000\ninterest expense $15,000\nrent expense $25,000\nconsulting revenue $420,000\n$195,000\n$245,000\n$225,000\n$645,000\n$420,000

Answer

Explanation:

Step1: Recall net - income formula

Net income = Revenue - Total expenses

Step2: Calculate total expenses

Total expenses = Employee salaries expense+Interest expense + Rent expense Total expenses = $185000 + 15000+25000=$225000$

Step3: Calculate net income

Revenue = $420000$, Total expenses = $225000$ Net income = $420000 - 225000=$195000$

Answer:

$195000$