Revenue on account amounted to $5,000. Cash collections of accounts receivable amounted to $3,050. Expenses for the period were $2,600. The company paid dividends of $700. What was the amount of net income for the period

The answer is $2,400

Explanation:

Solution

Given that:

Revenue on account = $5,000

Cash collections of accounts (receivable) = $3.050

Expenses for the period (time) = $2,600

Paid dividends = $700

Now,

we find the amount of net income for the period which is given below:

Net Income for the period = Net revenue - expense

$5000 - $2,600

=$2,400

Therefore, the amount of net income for the period is $2,400