Wayman Corporation reports the following amounts in its December 31, 2024, income statement: Revenues of \$500,000, Cost of Goods Sold of \$300,000, and Operating Expenses of \$120,000. What is Wayman Corporation's net income for the year ended December 31, 2024?

• A. \$320,000
• B. \$380,000
• C. \$80,000
• D. \$180,000

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the formula for calculating net income. Net income is calculated as Revenues minus Expenses. Expenses typically include Cost of Goods Sold (COGS) and Operating Expenses.
2. Step 2: Identify the given values from the problem. Revenues are \$500,000, Cost of Goods Sold is \$300,000, and Operating Expenses are \$120,000.
3. Step 3: Add up all the expenses. Use the formula: Total Expenses = Cost of Goods Sold + Operating Expenses. In MathML: $\mathrm{Total\; Expenses}=\mathrm{COGS}+\mathrm{Operating\; Expenses}$
4. Step 4: Subtract the total expenses from revenues to calculate net income. Use the formula: Net Income = Revenues - Total Expenses. In MathML: $\mathrm{Net\; Income}=\mathrm{Revenues}-\mathrm{Total\; Expenses}$
5. Step 5: Verify the calculation by ensuring all values are correctly substituted into the formulas and confirm the logical flow of the solution.