Question

Eagle Corp. operates Magnetic Resonance Imaging (MRI) clinics throughout the Northeast. At the end of the current period, the company reports the following amounts: Assets = $34,000; Liabilities = $19,000; Dividends = $1,400; Revenues = $10,800; Expenses = $7,400. Required: 1. Calculate net income.

Answer 1

Answer:

$3,400

Explanation:

The Net income of any corporation/entity/company can be calculated using the following formula:

Net income=Revenues- expenses

In the question given, the net income of the Eagle Corp can be calculated using the formula mentioned above.

Revenues=$10,800

Expenses=$7,400

net income=$10,800-$7,400=$3,400