Question

Goodman Auto started the year with total assets of $300,000 and total liabilities of $175,000. During the year, the business recorded $475,000 in revenues, $275,000 in expenses, and dividends of $30,000. The net income reported by Goodman Auto for the year was,$475,000 - $275,000 = _______.

Answer 1

The answer is $ 200,000

Step-by-step explanation:

The net income reported by Goodman Auto for the year was,$475,000 - $275,000 = $ 200,000.

The net income is difference between revenue earned by the company and expenses incurred in order to earn this revenue. In the problem goodman auto revenue is equal to 475,000 and expense are 275,000. So the difference between 475,000 and 275,000 will be reported as net income.