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    How to Calculate Net Income

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    My choices are 150000, 50000, 500000, or 850,000. .I did not come up with any of those!
    -Net Income Problem: A firm has the following accounts:

    Net patient revenue = $1,500,000
    Supply expense = $200,000
    Depreciation expense = $100,000
    Salaries and benefits = $700,000
    Other expenses = $200,000
    Net accounts receivable = $150,000

    What is the net income for the period?
    *Hint :Net accounts receivable is not an expense it is a income

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    Solution Summary

    This solution shows how to calculate net profit for a given period when you are given selected accounts. The solution shows the sections of the income statement where you should list certain accounts in order to arrive at an accurate income figure.