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    janemorales's Avatar
    janemorales Posts: 26, Reputation: 1
    New Member
    		  
    #1

    May 28, 2008, 09:07 PM
    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)
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    May 29, 2008, 01:02 AM
    Accounts payables is a liability, not an expense.

    Machinery is an asset, not an expense.
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