Question

tri fecta, a partnership, had revenues of $376,000 in its first year of operations. the partnership has not collected on $46,300 of its sales and still owes $39,900 on $175,000 of merchandise it purchased. there was no inventory on hand at the end of the year. the partnership paid $34,100 in salaries. the partners invested $44,000 in the business and $22,000 was borrowed on a five-year note. the partnership paid $1,760 in interest that was the amount owed for the year and paid $8,900 for a two-year insurance policy on the first day of business. compute net income for the first year for tri fecta.

Answer 1

The net income for the first year of Trifecta is $245,040.

Step-by-step explanation:

To compute the net income for the first year of Trifecta, we need to calculate the total revenue and deduct all the expenses.

Total revenue = Sales - Uncollected sales = $376,000 - $46,300 = $329,700

Total expenses = Salaries + Purchases + Interest + Insurance = $34,100 + $39,900 + $1,760 + $8,900 = $84,660

Net income = Total revenue - Total expenses = $329,700 - $84,660 = $245,040