Joe and Janice run an accounting firm. The firm receives $5,000,000 as income from its services. It pays an annual rent for office premises amounting to $240,000. The salary paid to staff amounted to $100,000. Other operating expenses added up to $24,000. What is the net income earned by their business? The total expenses of the accounting firm amounted to $ . Thus, the net income earned by the business is $ .

Respuesta :

Answer:

Expenses:  $364,000.00

Net income :  $4,636,000.00

Explanation:

The total expenses will be the sum of

Rent     $240,00.00

Salaries     $100,000.00

Operating expenses   $24,000.00

Total expenses   $364,000.00

Net income is the total revenue - total expenses

=$5,000,000.00  - $364,000.00

=$4,636,000.00