Problem
A cash-basis sole proprietor had the following cash receipts and disbursement for the year:
Net sales $80,000
Cost of goods sold 40,000
Operating expenses 20,000
Employee payroll taxes 3,000
Dividend income 900
Interest income from a personal savings account 200
What is the amount of reported net profit reported on Schedule C?
a. $20,000
b. $40,000
c. $17,000
d. $15,000
e. $18,000