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Net Income Calculation

\begin{tabular}{|c|c|c|}
\hline
Category & Description & Amount \\
\hline
Income & Wages & \[tex]$2,750.00 \\
\hline
Expenses & Rent & \$[/tex]850.00 \\
\hline
& Utilities & \[tex]$236.54 \\
\hline
& Entertainment & \$[/tex]410.00 \\
\hline
& Food & \[tex]$220.00 \\
\hline
& Cell Phone & \$[/tex]114.98 \\
\hline
& Credit Card \#1 & \[tex]$56.79 \\
\hline
& Credit Card \#2 & \$[/tex]38.45 \\
\hline
& Car Insurance & \[tex]$120.00 \\
\hline
& Car Payment & \$[/tex]260.00 \\
\hline
& School Loan & \[tex]$250.00 \\
\hline
Net Income & & \$[/tex]193.24 \\
\hline
\end{tabular}


Sagot :

To calculate the net income, we need to follow a structured approach. Let's break down the steps in detail:

1. Identify Monthly Income:
- Wages: [tex]$2,750.00 2. Identify Monthly Expenses: - Rent: $[/tex]850.00
- Utilities: [tex]$236.54 - Entertainment: $[/tex]410.00
- Food: [tex]$220.00 - Cell Phone: $[/tex]114.98
- Credit Card #1: [tex]$56.79 - Credit Card #2: $[/tex]38.45
- Car Insurance: [tex]$120.00 - Car Payment: $[/tex]260.00
- School Loan: [tex]$250.00 3. Calculate the Total Monthly Expenses: Add all the expenses together: \[ \text{Total Expenses} = 850.00 + 236.54 + 410.00 + 220.00 + 114.98 + 56.79 + 38.45 + 120.00 + 260.00 + 250.00 \] When you add these values, the total expenses amount to $[/tex]2,556.76.

4. Determine the Net Income:
Subtract the total expenses from the income to get the net income:
[tex]\[ \text{Net Income} = \text{Income} - \text{Total Expenses} \][/tex]
[tex]\[ \text{Net Income} = 2750.00 - 2556.76 \][/tex]
After performing the subtraction, the net income is [tex]$193.24. Thus, the net income is calculated as $[/tex]193.24.