Question

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ernst consulting
income statement
for month ended december 31
revenues
consulting revenue $ 12,500

total revenues $ 12,500
expenses
rent expense 2,270
salaries expense 5,450
telephone expense 750
miscellaneous expenses 500

total expenses 8,970
net income

Explanation:

To find the net income, we use the formula: Net Income = Total Revenues - Total Expenses.

Step 1: Identify Total Revenues and Total Expenses

From the income statement:

• Total Revenues = $12,500
• Total Expenses = $8,970

Step 2: Calculate Net Income

Using the formula for net income:
$$\text{Net Income} = \text{Total Revenues} - \text{Total Expenses}$$
Substitute the values:
$$\text{Net Income} = 12500 - 8970$$
$$\text{Net Income} = 3530$$

Answer:

The net income for Ernst Consulting for the month ended December 31 is $\$3,530$.