3 Case Study: Income Statement Calculate the net profit or loss for a hypothetical business.

Peter is head of accounting at the paper company that he works at and recorded the following statements:

Service Revenue: $20,000

Cash: $2,000

Accounts Receivable: $3,000

Office Supplies: $1,000

Salaries Payable: $5,000

Wages Expense: $15,000

Rent Expense: $2,000

Using this data, determine the net profit or loss for Peter's paper company.

a.) Net Income = $4,000

b.) Net Income = $8,000

c.) Net Income = $22,000

d.) Net Income = $3,000