In real life, income tax expense would be reported between net other revenues and expenses and Net Income. It is excluded in this illustration and in the textbook for simplicity.

• Gross Sales P700,000
• Sales Return & allow. P5,000
• Sales Discounts 3,000
• Cost of Merchandise Sold 300,000
• Selling Expenses 50,000
• Admin Expense 65,000
• Interest Revenue 1,500
• Interest Expense 300

What is the net income?