Answer:
(A) $150,000
Step-by-step explanation:
As per the given data of the question,
Maxwell Flooring started the year with
Total Assets = $160,000
Total liabilities = $75,000
Revenues = $250,000
Expenses = $100,000
Dividends = $30,000
Stockholders' equity at the end of the year was given by formula:
SE = (Total Assets - Total Liabilities) + (Revenues - Expenses) - Dividends
Therefore,
SE = (Total Assets - Total Liabilities) + (Revenues - Expenses) - Dividends
SE = ($160,000 - $75,000) + ($250,000 - $100,000) - $30,000
SE = $205000
Now,
Stockholders' equity at the end of the year
= Net income - Dividend + Assets - Liabilities
$205000 = Net income - $30,000 + $160,000- $75,000
∴ Net income = $205,000 - $55000 = $150,000
Hence,The net income reported by Maxwell Flooring for the year = $150,000
