Question

Mofro's Computer Repair Shop started the year with total assets of $270,000 and total liabilities of $180,000. During the year, the business recorded $450,000 in computer repair revenues, $250,000 in expenses, and Mofro paid dividends of $45,000. The net income reported by Mofro's Computer Repair Shop for the year was______________

Answer 1

Answer:

$200,000

Explanation:

As we know that

The net income is the income that is generated when we deduct all expenses incurred from all revenues generated that is reflected on the income statement  

In mathematically,  

Net income = Revenues earned - expenses incurred

                   = $450,000 - $250,000

                   = $200,000