Answer: $9,000
Explanation:
Given that,
1) issued stock = $40,000
2) borrowed = $25,000 from its bank
3) provided consulting services = $39,000 cash
4) paid back = $15,000 of the bank loan
5) paid rent expense = $9,000
6) purchased equipment = $12,000 cash
7) paid = $3,000 dividends to stockholders
8) paid employees' salaries = $21,000
Yowell's net income for Year 1:
= Cash received from consulting services - Rent expense paid - Employees salaries paid
= $39,000 - $9,000 - $21,000
= $9,000
