Question

Daniels Company reports the following year-end account balances at December 31, 2017. Accounts payable $20,000 Inventory $40,000 Accounts receivable $40,000 Land $100,000 Bonds payable, long-term $250,000 Goodwill $10,000 Buildings $160,000 Retained earnings $115,000 Cash $50,000 Sales revenue $500,000 Common stock $100,000 Supplies inventory $5,000 Cost of goods sold $200,000 Supplies expense $20,000 Equipment $80,000 Wages expense $100,000 What is Daniels' net income for 2017?

Answer 1

Answer:

         Net Income        180,000

Explanation:

The net income will be calculate by subtracting the expenses from the sales revenue of the firm

Sales revenue          500,000

Cost of goods sold (200,000)

Gross Profit              300,000

Operating expenses

Supplies expense (20,000)

Wages expense   (100,000)

 

         Net Income        180,000