Answer:
A) $514,000.
Explanation:
Operating income = Gross profit - Operating expenses
Operating income = $629,000 - $115,000
Operating income = $514,000
Answer:B
Explanation: pay attention
Answer:
D. $605,500
Explanation:
The computation of the expected balance in retained earnings on the 2018 is shown below:
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
= $533,500 + $112,000 - $40,000
= $605,500
We simply applied the above formula so that the ending balance could arrive by considering all the items given in the question
Answer:
c. discretionary income.
Explanation:
There are various incomes which are explained below:-
a. Net Income: The income which is calculated after considering all expenses is called gross income.
b. Disposable income: The income which is computed after deducting the tax expenses is known as disposable income. It is not meant for basic necessities that means it considered only tax expenses.
c. Discretionary income: The income which is computed after considering the income, government taxes, other business expenses and day to day expenses is called discretionary income.
d. Gross income: The income which is calculated before considering all expenses is called gross income.
e. Earned income after taxes: The income which is earned after deducting the tax expenses is called earned income after taxes.
In the given situation, the most appropriate option is C.