Use the information below to answer question 4 and 5 – Calculate the net profit?

Use the information below to answer question 4 and 5.

Sales N20,000
Cost sales N10,000
Operating expenses N2,500
Expenses prepaid included
in operating expenses N500

Calculate the net profit?

A N12,500

B N10,000

C N8,000

D N7,500

Answer is C