Question

During 2016, a company provided services for cash of $21,000 and services on credit of $15,000. the company collected accounts receivable of $8,000 and incurred operating expenses of $22,700, $14,000 of which were paid during the year. the amount of net income (loss) for the year is:

Answer 1

To find the net income you will calculate the total revenue and total expenses and subtract from one another.
Total revenue: $21,000+$15,000 = $36,000
Total expenses: $22,700
Net income: $36,000 - $22,700 = $13,300
Net income: $13,300