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Benny Beauty Parlor
Income Statement
For the Six-Month Period ended December 31, 2007

Income ₱ 120,000
Less: Operating Expense
Taxes and Licenses ₱ 3,000
Salaries Expense 24,000
Rent Expense 12,000
Light and Water 7,000
Supplies Expense 10,000
₱ 56 000
₱ 64, 000

5. If the income is only ₱ 50,000 and the expenses remain the same, what is the result of the operation of the business?