The income statement of Montee Co. for the month of July shows net income of $1,450 based on Service Revenue $5,500, Salaries and Wages Expense $2,300, Supplies Expense $1,200, and Utilities Expense $600. In reviewing the statement, you discover the following.

1. Insurance expired during July of $400 was omitted.
2. Supplies expense includes $250 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $150 was omitted.
4. Accrued but unpaid salaries and wages at July 31 of $300 were not included.
5. Services performed but unrecorded totaled $650

Prepare a correct income statement for July 2017

MONTEE COMPANY
Income statement
For the Month Ended July 31, 2017
Revenue
Service revenue		$ 6,150.00
Expenses
Salaries and wages expense	$ 2,600.00
Supplies expense	$ 950.00
Utilities expense	$ 600.00
Insurance expense	$ 400.00
Depreciation expense	$ 150.00
Total expenses		$ 4,700.00
Net income		$ 1,450.00

Having the solution, consider the following question: How would net income change if Supplies Expense was $1,500 versus $1,200?