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AleksAgata [21]
3 years ago
14

Which one of these is correct?

Business
1 answer:
iren [92.7K]3 years ago
7 0

Answer:

Net income is distributed either to dividends or retained earnings.

Explanation:

The net income is calculated after providing for all the expenses, that is after providing for the tax expense from operating profit, it is net income.

Basically any amount distributed as dividend to shareholders whether preference or equity is deducted from net income, and the balance if any in net income forms part of retained earnings.

This is as per the guidelines of GAAP, for preparation and presentation of financial statements.

Therefore, the correct statement is:

Statement 2

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2 years ago
Lopez Corporation incurred the following costs while manufacturing its product.
aev [14]

Answer:

a. $352,200

b. $372,100

Explanation:

The cost of goods manufactured

<em>Consider only the manufacturing costs</em>

Cost of goods manufactured = $122,200 + $69,200 + $17,600 + $113,100 + $34,000 + $13,300 - $17,200

                                                =$352,200

Cost of goods sold

<em>Add Cost of goods manufactured to the net of Finished inventory balance</em>

Cost of goods sold = $47,900 $68,800 + $352,200 - $47,900

                                = $372,100

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As a manager, jermaine, defines goals, set performance objectives, and identify action steps for accomplishing them. jermaine is
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