Asked by Cameron Simmons-Willis on Jul 11, 2024
Verified
Della's Donuts owner made investments of $50,000 and withdrawals of $20,000. The company has revenues of $83,000 and expenses of $64,000. Calculate its net income.
A) $30,000.
B) $83,000.
C) $64,000.
D) $19,000.
E) $49,000.
Net Income
Net income is the amount of money left after all expenses, taxes, and costs have been subtracted from a company's total revenue.
Revenues
Income generated from normal business operations and includes discounts and deductions for returned merchandise.
- Compute and elucidate net income.
Verified Answer
SJ
Sunil JogpalJul 11, 2024
Final Answer :
D
Explanation :
Net income is calculated by subtracting expenses from revenues.
Net income = revenues - expenses
Net income = $83,000 - $64,000
Net income = $19,000
Investments and withdrawals are not factored into the calculation of net income. Therefore, the correct answer is D, $19,000.
Net income = revenues - expenses
Net income = $83,000 - $64,000
Net income = $19,000
Investments and withdrawals are not factored into the calculation of net income. Therefore, the correct answer is D, $19,000.
Learning Objectives
- Compute and elucidate net income.