Question

Beginning retained earnings are $65,000; sales are $29,500; expenses are$33,000; and dividends paid are $3,500. How much is the net income or loss for the company?

Answer 1

loss of $ 3,500

Step-by-step explanation:

Data provided:

Total earnings = $ 65,000

sales = $ 29,500

Expenses = $ 33,000

Dividends paid = $ 3,500

Now,

The net income or loss will be calculated from the sales and the expenses

Therefore,

The net income or loss = Total sales - Total Expenses

or

The net income or loss = $ 29,500 - $ 33,000

or

The net income or loss = - $ 3,500

here, the negative sign depicts the loss

hence,

the company made a loss of $ 3,500