Question

Portions of the financial statements for avatar technologies are provided below. avatar technologies income statement for the year ended december 31, 2024 net sales $325,000 expenses: cost of goods sold $195,000 operating expenses 62,000 depreciation expense 16,200 income tax expense 23,000 total expenses 296,200 net income $ 28,800 avatar technologies selected balance sheet data december 31, 2024, compared to december 31, 2023 decrease in accounts receivable $ 6,200 increase in inventory 13,200 decrease in prepaid rent 9,200 increase in salaries payable 5,200 decrease in accounts payable 8,200 increase in income tax payable 20,800

What is the net income for Avatar Technologies for the year ended December 31, 2024?
A. $16,800
B. $28,800
C. $48,000
D. $325,000

Answer 1

The net income for Avatar Technologies for the year ended December 31, 2024, is $28,800. This is calculated by subtracting total expenses from net sales as shown in the income statement.

Step-by-step explanation:

The net income for Avatar Technologies for the year ended December 31, 2024 is $28,800. This can be calculated by subtracting the total expenses from the net sales. The total expenses are $296,200, which is the sum of the cost of goods sold, operating expenses, depreciation expense, and income tax expense. Therefore, the net income is $325,000 - $296,200 = $28,800.

The net income for Avatar Technologies for the year ended December 31, 2024, is provided in the income statement section of the financial statements. According to the provided figures, net sales amount to $325,000, and the total expenses, including cost of goods sold, operating expenses, depreciation expense, and income tax expense, add up to $296,200. Subtracting the total expenses from the net sales gives us the net income for the year, which is $28,800. Therefore, the correct answer to the question is B. $28,800.