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The Ryan Express, provider of tax services, starts operations on 1/1/17. Now that the company has been in business for more than a year, the controller is assembling financial statements for the year ended 12/31/17. During 2017, the following transactions took place: Per

1. On January 1, 2017, shareholders paid $1,000,000 in cash for common stock.
2. Ryan Express earned revenue of $500,000 which increased Accounts Receivable (not cash).
3. Ryan Express paid $125,000 in salaries expense.
4. Ryan Express paid $75,000 in rent expense.
5. Ryan Express bought $25,000 of supplies but did not pay cash, so this increased Accounts Payable.
6. Ryan Express paid $10,000 in travel expense.
7. Clients paid Ryan Express cash of $400,000 for transaction #2, which reduced accounts receivable
8. Ryan Express paid shareholders a $190,000 cash dividend. Abc
Ryan Express Net Income for 2017 is

A $190,000.
B $265,000.
C $165,000.
D) $290,000

1 Answer

5 votes

Answer:

D) $290,000

Step-by-step explanation:

revenue earned 500,000

expense paid (125,000) salaries

epxense paid (75,000) rent

expense paid (10,000) travel

net income 290,000

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