Question

Sunny Corporation began the year with cash of $ 141, 000 and land that cost $ 55, 000. During the year Sunny earned service revenue of $ 250 comma 000 and had the following​ expenses: salaries, $ 190 comma 000​; ​rent, $ 80,000​; and​ utilities, $ 28,000. At​ year-end Sunny​'s cash balance was down to $ 15 comma 000. How much net income​ (or net​ loss) did Sunny experience for the​ year?

Answer 1

Answer:

Net Loss experienced during the year = ($48,000)

Explanation:

Provided information we have,

Revenue for the year = $250,000

Costs incurred during the year

Salaries = $190,000

Rent = $80,000

Utilities = $28,000

Total cash cost = $298,000

Thus, net income or (loss) = Total Revenue for the year - Total cost for the year

Thus, Net Income or (Loss) = $250,000 - $298,000 = ($48,000)

Therefore, Net Loss experienced during the year = ($48,000)