Question

Use the following information for Jake Company: Sales Revenue .......................................... $2,000,000 Interest/Dividend Revenue .................. 50,000 Cost-of-Goods- Sold ............................ 1,000,000 Selling and Administrative Expenses.. 200,000 Loss on Discontinued Operations ..... 100,000 Unearned Revenue .............................. 100,000 What is Net Income for the Year Ended December 31, 2020 (ignore taxes)

Answer 1

Answer: $750,000

Explanation:

Net Income

Sales Revenue                                 2,000,000

Interest/ Dividend Revenue                50,000

                                                         2,050,000

Cost of Goods sold                         (1,000,000)

Selling and Admin expenses            (200,000)

Loss on Discontinued                       (100,000)

Net Income                                        $750,000