Question

Dynamic Production Services started the year with total assets of $ 130 comma 000 and total liabilities of $ 50 comma 000. The revenues and the expenses for the year amounted to $ 140 comma 000 and $ 50 comma 000​, respectively. During the​ year, the company did not issue any common​ stock, but it distributed dividends of $ 45 comma 000. Calculate​ Dynamic's net income for the year.

Answer 1

Net Income for the year = $90000

Step-by-step explanation:

The net income is the function of Revenues less expenses.

The revenue for the year is provided in the question and it amounts to $140000. Similarly the figure for this period's expenses is also available as $50000.

The net income for the year is,

Net Income = Revenue - expenses

Net Income = 140000 - 50000 = $90000