How did WLACU's Q4 2024 expenses impact its net profit?
5/9/2025 12:39am
**WLACU's Q4 2024 expenses had a significant impact on its net profit.** Here's a detailed analysis:
1. **Total Expenses and Net Income**: WLACU's total expenses for Q4 2024 were $160,014, which is equal to its net income for the same period.
2. **Revenue Calculation**: To understand the impact of expenses on net income, we can calculate the revenue for the quarter. Since net income is the amount remaining after expenses, we can rearrange the formula Net Income = Revenue - Expenses to find Revenue = Net Income + Expenses. Thus, the revenue for WLACU in Q4 2024 was $320,028.
3. **Comparison and Insights**: WLACU's net income of $160,014 indicates that after covering all expenses, there is no surplus left. This means that any increase in expenses would directly reduce net income, potentially leading to a loss if expenses were to exceed net income. Conversely, a decrease in expenses could increase net income, potentially towards zero if no other income sources are available.
4. **Conclusion**: The impact of $160,014 expenses on $160,014 net income is that of complete offset, leaving WLACU with no profit margin after expense coverage. Any additional expenses would further compress margins or lead to a loss if not offset by revenue growth or other income sources.