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9 March, 22:48

The following information relates to Marin Inc. for the year 2017.

Retained earnings, January 1, 2017 $48,960 Advertising expense $1,840

Dividends during 2017 5,100 Rent expense 10,610

Service revenue 63,750 Utilities expense 3,160

Salaries and wages expense 28,560 Other comprehensive income (net of tax)

410

After analyzing the data, compute net income.

Net income / (loss) =

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Answers (1)
  1. 10 March, 02:34
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    Net income = $74,050

    Explanation:

    To answer this question, we have to first classify the particulars into either income or expenditure, and find their difference. If income is more than expenditure, profit is made, but if expense is more, loss is made.

    Income:

    Retained earnings = $ 48,960

    Dividends = $ 5,100

    service revenue = $ 63,750

    other comp. income = $ 410

    Total = $ 118,220

    Expenses

    Advertising expense = $ 1,840

    Rent expense = $ 10,610

    utilities expense = $ 3,160

    Salaries and wages = $ 28,560

    Total = $ 44,170

    Since the total income is more than total expense, profit was made, hence the net income = Total income - Total expense

    = 118,220 - 44,170 = $74,050
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