The financial records for Harold Corporation included the following information: Accounts receivable, $55,000 Accounts payable, $20,000 Cash, $25,000 Common stock, $25,000 Dividends, $15,000 Sales revenue, $90,000 Salaries and wages expense, $30,000 Supplies expense, $10,000 Based on this information, how much was its net income?

Question

Business

Armani Beasley

30 October, 18:58

The financial records for Harold Corporation included the following information: Accounts receivable, $55,000 Accounts payable, $20,000 Cash, $25,000 Common stock, $25,000 Dividends, $15,000 Sales revenue, $90,000 Salaries and wages expense, $30,000 Supplies expense, $10,000 Based on this information, how much was its net income?

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Answers (1)

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Jeffery · Answer 1

Net income = $35,000

Explanation:

As for the financial information provided,

We know that,

Dividends will be deducted from net income,

Sales revenue is the main source for net income.

Salaries and wages expense will be deducted from net income,

Supplies expense will also be deducted from net income.

Therefore, net income shall be

Sales Revenue $90,000 - Salaries and Wages Expense $30,000 - Supplies Expense $10,000 - Dividend $15,000 = $35,000