Question

During the year ended December 31, 2017, Gluco, Inc., split its stock on a 5-for-1 basis. In its annual report for 2016, the firm reported net income of $930,900 for 2016, with an average 254,100 shares of common stock outstanding for that year. There was no preferred stock.
Required:
a. What amount of net income for 2016 will be reported in Gluco's 2017 annual report?

Answer 1

Answer:

$930,900

Explanation:

In the income statement, the total revenues and the total expenses are recorded.  

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.