Question

A roadblock, in the way. I have been trying all solutions and still getting the wrong answer

Please help

AME Engage Income Statement For the Year Ended April 30, 2019 $ 53280 $ 18800 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses $ 34480 Advertising Expense • $ 1500 . $2900 • $ 10800 Depreciation Expense-Equipment Rent Expense-Retail Space Sales Salaries Expense Total Selling Expenses Administrative Expenses Office Salaries Expense • $ 8600 $ 23800 • $ 4400 $5300 $ 9700 $ 33500 Rent Expense-Office Space Total Administrative Expenses Total Operating Expenses Income from Operations Other Income and Expenses Gain on Sale of Equipment $ 980 $ 4100 ✓ Interest Expense $ 600 $ 3500 S 38580 Net Income

Calculating net income

Answer 1

Income Statement				Computation
For the year ended April 30, 2019
Sales			$ 53,280	a
Cost of goods sold			$ 18,800	b
Gross profit			$ 34,480	c = a-b
Operating expenses
Selling expenses
● Advertising expenses	$    1,500
● Depreciation expense - equipment	$    2,900
● Rent expense -retail space	$ 10,800
● Sales salaries expense	$    8,600
Total selling expenses		$ 23,800		d
Administrative expenses
● Office salaries expenses	$    4,400
● Rent expense -office space	$    5,300
Total administrative expenses		$    9,700		e
Total operating expenses			$ 33,500	f = d + e
Income from operations			$        980	g = c - f
Other income and expenses
● Gain on sale of equipment		$    4,100
● Interest expense		$        600	$    3,500	h (4100-600)
Net income			$    4,480	g + h

I do not get how net income of $38,580 is arrived at.

However, one possibility I found out is given below (THIS IS WRONG, ONLY FOR EXPLANATION PURPOSE):

Income Statement
For the year ended April 30, 2019
Sales			$   53,280
Cost of goods sold			$ 18,800
Gross profit			$   72,080
Operating expenses
Selling expenses
● Advertising expenses	$    1,500
● Depreciation expense - equipment	$    2,900
● Rent expense -retail space	$ 10,800
● Sales salaries expense	$    8,600
Total selling expenses		$ 23,800
Administrative expenses
● Office salaries expenses	$    4,400
● Rent expense -office space	$    5,300
Total administrative expenses		$    9,700
Total operating expenses			$   33,500
Income from operations			$   38,580

• You seem to have wrongly added together sales and cost of goods sold 72,080
• And deducted operating expense from 72,080: (72080-33500 = 38580)
• And didn't consider operating income.