Answer: Net Income = $65000
Explanation:
Given that,
Accounts receivable = $60,000
Accounts payable = $20,000
Cash = $25,000
Common stock = $10,000
Insurance expense = $5,000
Salaries and wages expense = $50,000
Sales revenue = $120,000
Net Income = Sales revenue - Salaries and wages expense - Insurance expense
= $120,000 - $50,000 - $5,000
= $65,000
