Question

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

Answer 1

Answer: $20,000

Step-by-step explanation:

Net Income is the amount from revenue that the company made over expenses. It is therefore;

= Revenue - Expenses

= 110,000 - 90,000

= $20,000

Note: Dividends are not considered in the calculation of Net Income as they are not expenses.