What is the net income for Hall's Jack'em and Fix'em Shop for the current month?

Question

Cleve · Answer

Calculating Net Income for Hall's Shop Net income for the current month: The net income for the month is $1,650.  To calculate the net income for the month, we need to consider the revenues and expenses incurred by Hall's Jack'em and Fix'em Shop. Here are the relevant amounts:  1. Repair work revenue: $9,400. This includes the amount charged for repair work done during the month, which includes the $500 owed by the customer. 2. Cost of parts and oil purchased: $2,900. This includes the total cost of parts and oil purchased during the month. However, we need to subtract the amount still owed to the oil supplier, which is $400. So the net cost is $2,500 ($2,900 - $400). 3. Cost of parts used in repair work: $2,300. This represents the cost of the parts that were used in repair work during the month. 4. Rent expense: $1,400. This includes the $700 paid for the current month's rent and the additional $700 paid for the next month's rent. 5. Advertising expense: $250. This is the amount paid to settle the bills related to the previous month's advertising costs. 6. Friend's payment: $490. This includes the payment of $490 made to the friend for helping in the repair shop. 7. Utilities expense: $810. This represents the total utilities expenses related to operating the repair shop for the month, including the $125 owed from the previous month.  Now, let's calculate the net income: Total revenue = $9,400 Total expenses = $2,500 (cost of parts and oil) + $2,300 (cost of parts used) + $1,400 (rent) + $250 (advertising) + $490 (friend's payment) + $810 (utilities) = $7,750 Net income = Total revenue - Total expenses = $9,400 - $7,750 = $1,650  Therefore, the net income for the month is $1,650.

Calculate the Net Income for Hall's Shop This Month

Calculating Net Income for Hall's Shop

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