Question

Sparty Corporation has provided the following information for its most recent year of operation: Revenues earned were $84,000, of which $9,000 were uncollected at the end of the year. Operating expenses incurred were $46,000, of which $8,000 were unpaid at the end of the year. Dividends declared were $19,000, of which $3,000 were unpaid at the end of the year. Income tax expense is $13,300.
Required:
How much net income was reported on Sparty's income statement?

Answer 1

Answer: $247000

Explanation:

The following can be deduced from the question:

Revenue 84,000

Less: Operating Expenses 46,000

Profit Before Tax 38,000

Less Taxes 13,300

Net Income 24700

Therefore, the net income that was reported on Sparty's income statement will be $24700.