Chapter 5—Accounting for Merchandising Operations
+ Other revenues/gains – Other expenses/losses = Net income or Net loss. An example for the determination of net incomefrom gross profit as follows: Gross profit 144,000 - Total operating expenses - 114,000 = Income from operations 30,000 + Other revenues and gains + 3,600 - Other expenses and losses - 2,000 = Net income $31,600 ................
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