On January 1st, 2018, Dr. Marcie Cousins established Health-Wise Medical, a medical practice organized as a proprietorship.  The following conversation occurred the following August between Dr. Cousins and a former medical school classmate, Dr. Avi Abu, at an American Medical Association convention in Seattle.Dr. Abu:  Marcie, good to see you again.  Why didn't you call when you were in Miami?  We could have had dinner together.Dr. Marcie Cousins:  Actually, I never made it to Miami this year.  My husband and kids went up to our Vail condo twice, but I got stuck in Jacksonville.  I opened a new consulting practice this January and haven't had any time for myself since.Dr. Abu:  I hear about it....Health....something....right?Dr. Marcie Cousins:  Yes, Health-Wise Medical.  My husband chose the name.Dr. Abu:  I've thought about doing something like that.  Are you making money? I mean, is it worth your time?Dr. Marcie Cousins:  You wouldn't believe it.  I started by opening a bank account for my business with $25,000, and my July bank statement for my business has a balance of $80,000.  Not bad for six months---ALL PURE PROFIT!Dr. Abu:  Maybe I'll try it in Miami!  Let's have breakfast together tomorrow and you can fill me in on the details.Why would  Dr. Cousins  be wrong in her assessment that the difference in her bank account balance over 6 months is all pure profit. please give three reasons explained

Question
Asked Oct 26, 2019
  1. On January 1st, 2018, Dr. Marcie Cousins established Health-Wise Medical, a medical practice organized as a proprietorship.  The following conversation occurred the following August between Dr. Cousins and a former medical school classmate, Dr. Avi Abu, at an American Medical Association convention in Seattle.

Dr. Abu:  Marcie, good to see you again.  Why didn't you call when you were in Miami?  We could have had dinner together.

Dr. Marcie Cousins:  Actually, I never made it to Miami this year.  My husband and kids went up to our Vail condo twice, but I got stuck in Jacksonville.  I opened a new consulting practice this January and haven't had any time for myself since.

Dr. Abu:  I hear about it....Health....something....right?

Dr. Marcie Cousins:  Yes, Health-Wise Medical.  My husband chose the name.

Dr. Abu:  I've thought about doing something like that.  Are you making money? I mean, is it worth your time?

Dr. Marcie Cousins:  You wouldn't believe it.  I started by opening a bank account for my business with $25,000, and my July bank statement for my business has a balance of $80,000.  Not bad for six months---ALL PURE PROFIT!

Dr. Abu:  Maybe I'll try it in Miami!  Let's have breakfast together tomorrow and you can fill me in on the details.

Why would  Dr. Cousins  be wrong in her assessment that the difference in her bank account balance over 6 months is all pure profit. please give three reasons explained

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Net income:

The net income is the profit generated in the business over particular period of time. Net income is calculated by deducting the total expense from the total revenue,...

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