Question

Charlie's chocolates inc.'s stockholders made investments of $74,000 and dividends of $32,000. the company has revenues of $107,000 and expenses of $76,000. calculate its net income.

Answer 1

Net income = revenues - expenses
N = $107,000 - $76,000 = $31,000

Net income is $31,000

Dividends and investments aren't included in net income.

Answer 2

$63,000

Step-by-step explanation:

Net profit = sales revenue + dividends = $(107,000 + 32,000) = $139,000

Net income = Net profit - expenses

Net income = $139,000 - $76,000 = $63,000