Multiple Choice
When should you select settings and customizations for your company file in a financial accounting software?
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1. Introduction to Accounting
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Hemming Company reported the following: Sales revenue of \$120,000, Cost of goods sold of \$70,000, and Operating expenses of \$30,000. What is Hemming Company's net income?
A
$50,000
B
$100,000
C
$20,000
D
$30,000
Verified step by step guidance1
Step 1: Understand the formula for calculating net income. Net income is calculated as: Net Income = Sales Revenue - Cost of Goods Sold - Operating Expenses.
Step 2: Identify the values provided in the problem. Sales revenue is $120,000, Cost of Goods Sold is $70,000, and Operating Expenses are $30,000.
Step 3: Substitute the values into the formula. Using MathML, the formula becomes: . Substituting the values: .
Step 4: Perform the subtraction step by step. First, subtract the Cost of Goods Sold from Sales Revenue: . Then subtract Operating Expenses from the result.
Step 5: Interpret the result. The final value after performing the calculations represents Hemming Company's net income.
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