Using the following information, what is the amount of net income? Purchases $ 33,114 Selling expenses $ 677 Merchandise inventory, September 1 7,740 Merchandise inventory, September 30 11,372 Administrative expenses 665 Sales 50,575 Rent revenue 1,118 Interest expense 1,152 a.$31,089 b.$22,021 c.$11,977 d.$19,717

The net income is $32,961

Explanation:

To calculate the net income, we will classify the transaction into income and expenses, and compute the difference between their totals;

Income;

Merchandise inventory Sept. 1 = $ 7,740

Merchandise inventory Sept. 30 = $ 11,372

Sales = $ 50,575

Total = $ 69,687

Expenses;

Purchases = $ 33,114

Selling expenses = $ 677

Administrative expense = $ 665

Rent Revenue = $ 1,118

Interest expense = $ 1,152

Total = $ 36,726

Net income = Total income - Total expenses

= 69,687 - 36,716

= $ 32,961