Income Statement Basics

The following is an income statement for January $20$xx$,$ of Sample Caf. Use this information to answer the questions for the remainder of the assignment.

Account

Balance

Revenues

$$24,000$

Cost of Goods Sold

$$3,000$

Gross Margin or Gross Profit

$$21,000$

Expenses:

Salaries and Wages

$$17,000$

Rent and Utilities

$$2,000$

Advertising

$$2,000$

Insurance

$$50$

Equipment Depreciation

$$300$

Interest

$$200$

Total Expenses

$$21,550$

Net Income

$$-550$

Use the Income Statement to answer the following question:

QUESTION $6$

If the Sample Caf had given employees a $10\%$ raise at the beginning of January, what would Net Income have been presuming payroll taxes increased at the same rate as wages?

$

Answer