$4\mathrm{.}1$ Balance Sheet

Quick Refresher

This Refresher from $2\mathrm{.}5$ Financial Statements for a Merchandising Company will help you get familiar with prerequisite concepts

Henry Hardware had the same net sales amount in both September and October. However, the company's cost of goods sold was $$5,000$ higher in September than in October, and its total administrative expenses were $$7,250$ higher in October than in September. Assuming all other aspects of the firm's income statement are the same for both months, we can conclude that Henry's net income in Septemberwas

$$2,250$ lower than its net income in October.

$$12,250$ lower than its net income in October.

$$12,250$ higher than its net income in October.

$$2,250$ higher than its net income in October.