Question

The following information relates to Novak Corp. for the year 2022. Retained earnings, January 1, 2022 $58,560 Advertising expense $2,200 Dividends during 2022 6,100 Rent expense 12,690 Service revenue 76,250 Utilities expense 3,780 Salaries and wages expense 34,160 Other comprehensive income (net of tax) 490 After analyzing the data, compute net income.

Answer 1

The net income for Novak Corp. in 2022 is $16,830.

Step-by-step explanation:

To calculate the net income, we need to find the total revenues and deduct the expenses. From the given information:

• Service revenue: $76,250
• Advertising expense: $2,200
• Dividends: $6,100
• Rent expense: $12,690
• Utilities expense: $3,780
• Salaries and wages expense: $34,160
• Other comprehensive income (net of tax): $490

Net income is calculated by taking the total revenues and deducting the total expenses:

Net income = Total revenues - Total expenses

Net income = $76,250 - ($2,200 + $6,100 + $12,690 + $3,780 + $34,160 + $490)

Net income = $76,250 - $59,420 = $16,830

Therefore, the net income for Novak Corp. in 2022 is $16,830.