Amount of reported net profit


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

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Accounting Basics: Amount of reported net profit
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