Question

John’s Landscaping had shareholders that invested $150,000. The company has earned revenues of $75,000, of which $50,000 were collected. They have incurred expenses of $82,000. Calculate its net income. Group of answer choices

Answer 1

the net income is -$7,000

Step-by-step explanation:

The computation of the net income is shown below:

As we know that

Net income = earned revenues - incurred expenses

= $75,000 - $82,000

= -$7,000

By deducting the expenses from the revenues we can get the net income

But here the net income is in negative as the expenses are more than the revenues

So, the net income is -$7,000