which of the following equations correctly describes how to calculate net income?\na. net income = (cost of…

which of the following equations correctly describes how to calculate net income?\na. net income = (cost of goods sold) - (net sales) - (operating expenses)\nb. net income = (operating expenses) - (cost of goods sold) - (net sales)\nc. net income = (operating expenses) + (cost of goods sold) - (net sales)\nd. net income = (net sales) - (cost of goods sold) - (operating expenses)\nplease select the best answer from the choices provided\no a\no b\no c\no d

which of the following equations correctly describes how to calculate net income?\na. net income = (cost of goods sold) - (net sales) - (operating expenses)\nb. net income = (operating expenses) - (cost of goods sold) - (net sales)\nc. net income = (operating expenses) + (cost of goods sold) - (net sales)\nd. net income = (net sales) - (cost of goods sold) - (operating expenses)\nplease select the best answer from the choices provided\no a\no b\no c\no d

Answer

Answer:

D. net income = (net sales) - (cost of goods sold) - (operating expenses)

Explanation:

Step1: Recall net - income formula

Net income is calculated by starting with net sales, subtracting the cost of goods sold (COGS) which is the direct cost attributable to the production of the goods sold by a company, and then subtracting operating expenses (costs related to running the day - to - day operations of the business). So the formula is net income=net sales - cost of goods sold - operating expenses.