James has prepared his income statement:
Income
Salary 3,500
Tax withholding (490)
401(k) 0
Health insurance (210)
Net salary 2,800
Total net income $2,800. 00
Expenses
Rent (900)
Utilities (325)
Internet (62)
Credit card payments (200)
Food (625)
Clothes (200)
Transportation (200)
Entertainment (400)
Total expenses $2,912. 00
Difference ($112. 00)
The bottom line of James’s income statement shows a negative number. What does this mean?
