Question

Ashley's accessory shop started the year with total assets of $210,000 and total liabilities of $120,000. During the year of the business recorded $330,000 in revenue, 165,000 and expenses, and dividends of $60,000. The net income reported by Ashley's accessory shop for the year was

Answer 1

Ashley's accessory shop reported a net income of $105,000 for the year, calculated by subtracting expenses ($165,000) and dividends ($60,000) from the revenue ($330,000).

Step-by-step explanation:

To determine the net income for Ashley's accessory shop for the year, we must apply the basic accounting equation for net income which is:

Net Income = Revenues - Expenses - Dividends

Ashley's accessory shop recorded $330,000 in revenue, had expenses of $165,000, and paid out dividends of $60,000. Using these figures, we can calculate the net income as follows:

Net Income = $330,000 (revenue) - $165,000 (expenses) - $60,000 (dividends)

Net Income = $105,000

Therefore, the net income reported by Ashley's accessory shop for the year was $105,000.