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  • May 28, 2008, 09:07 PM
    janemorales
    Net Income Computations
    Is this computation of net income correct?

    CGS 60,000
    Interest Expense 18,000
    cash 3,000
    Retained earnings 50,000
    sales 100,000
    A/P 12,000
    Rent Revenue 5,000
    machinery 175,000

    NI=gross revenues - cgs - expenses

    NI = 100,000 + 5,000 - 60,000 - 18,000 - 12,000 - 175,000
    NI = (160,000)
  • May 29, 2008, 01:02 AM
    morgaine300
    Accounts payables is a liability, not an expense.

    Machinery is an asset, not an expense.

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