Table 5-1 -Referring to Table 5-1, What Is the Net Income?
A)$60,000

question 155

Multiple Choice

Table 5-1 $$\begin{array} { | l | r | } \hline \text { Sales revenue } & \$ 480,000 \\\hline \text { Cost of goods sold } & 300,000 \\\hline \text { Sales discounts } & 20,000 \\\hline \text { Sales retums and allowances } & 15,000 \\\hline \text { Operating expenses } & 85,000 \\\hline \text { Interest revenue } & 5,000 \\\hline\end{array}$$
-Referring to Table 5-1, what is the net income?

• A)$60,000
• B)$65,000
• C)$55,000
• D)$180,000

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Definitions:

Creditors

Individuals or institutions to whom money is owed by a debtor for goods, services, or loans provided.

Investors

Persons or organizations that invest funds anticipating financial gains in return.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and equity at a specific point in time, providing a snapshot of its financial condition.

Stockholders' Equity

Stockholders' equity represents the ownership interest of shareholders in a company, calculated as total assets minus total liabilities.