The income statement for the year will show a net income of 87,000 during the financial year.
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What is net income?</h3>
In business, net income refers to the amount of money left over after all expenditures have been paid, such as salaries and wages, the cost of items or raw materials, and taxes.
Net Income = Gross Profit — Operating Expenses — Other Business Expenses — Taxes — Interest on Debt + Other Income
Given:
Cash = $70,000
Accounts Receivable =28,000
Supplies= 4,000
Accounts Payable = 10,000
Notes Payable = 5,000
Retained Earnings, beginning of year = 17,000
Common Stock= 40,000
Service Revenue= 53,000
Wages Expense= 8,000
Advertising Expense = 5,000
Rent Expense = 10,000
so, the Net income during the given period will be :
NI = total revenue-total expenses
=1,02,000-15,000
=87,000
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