Robert Bentley owns and operates the Bentley Clothing Store.A traditional income statement is shown below.There is no outstanding mortgage and the building is fully depreciated. If Bentley could rent the building for $88,000 net per year and could work at another business for an annual salary of $130,000, what is the economic Profit/Loss?

Accounting Income Statement

Net Sales

$650,000

Less Cost of Goods Sold

($250,000)

Gross Profit

$400,000

Less Expenses

Salary

$150,000

Advertising

$30,000

Utilities & Maintenance

$20,000

Miscellaneous

$10,000

Total

($201,000)

Net Profit before Tax

$190,000