Question

Sandra Corporation has provided the following information for its most recent year of operation: Revenues earned were $90,000, of which $9,000 were uncollected at the end of the year. Operating expenses incurred were $40,000, of which $9,000 were unpaid at the end of the year. Dividends declared were $13,000, of which $6,000 were unpaid at the end of the year. Income tax expense is $19,000. What is the amount of net income reported on Sandra's income statement

Answer 1

the net income that should be reported on the income statement is $31,000

Step-by-step explanation:

The computation of amount of net income is shown below:

Revenue $90,000

Less Operating Expenses -$40,000

Profit Before Tax -$50,000

Less Taxes -$19,000

Net Income $31,000

Hence, the net income that should be reported on the income statement is $31,000