If a company has net sales of \$100 and expenses of \$30, what is the net income?

• A. \$30
• B. \$130
• C. \$100
• D. \$70

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the formula for calculating net income. Net income is calculated as: Net Income = Net Sales - Expenses.
2. Step 2: Identify the values provided in the problem. Net sales are given as \$100, and expenses are given as \$30.
3. Step 3: Substitute the values into the formula. Using MathML, the formula becomes: $\mathrm{Net\; Income}=\mathrm{Net\; Sales}-\mathrm{Expenses}$. Substituting the values: $100-30$.
4. Step 4: Perform the subtraction operation to determine the net income. This involves subtracting the expenses from the net sales.
5. Step 5: Verify the result to ensure accuracy and confirm that the net income calculation aligns with the provided correct answer of \$70.