Question

The following data pertains to Sultan. Total assets at January 1, 2014, were $312000; at December 31, 2014, total assets were $384000. During 2014, sales were $1072000; dividends were $19000; and operating expenses (exclusive of cost of goods sold) were $610000. Total liabilities at December 31, 2014, were $183000; at January 1, 2014, total liabilities were $200000. There were no additional capital investments by Sultan during 2014. What was net income for 2014?

Answer 1

he net income for the year is $108,000

Step-by-step explanation:

Answer 2

The net income for the year is $108,000

Step-by-step explanation:

The computation of the net income for the year 2014 is shown below;

Total increase in Assets during 2014 $72,000 ($384,000 - $312,000)

Add: Total decrease in Liabilities during 2014 $17,000 ($200,000 - $183,000)

Total increase in Equity during 2014 $89,000

Add: Dividends $19,000

Net income for 2014 $108,000

Hence, the net income for the year is $108,000