Question

Blue Spruce Corp. started the year with total assets of $304000 and total liabilities of $244000. During the year the business recorded $630000 in revenues, $325000 in expenses, and dividends of $61000. The net income reported by Blue Spruce Corp. for the year was:_____________

Answer 1

Answer:

$305,000

Explanation:

Net income is the amount of money available to a company after the deduction of expenses from revenue. It is calculated as;

Net income = Revenues - Expenses

Given that;

Revenues = $630,000

Expenses = $325,000

Net income = $630,000 - $325,000

Net income = $305,000

Therefore the net income reported by Blue Spruce Corp. For the year is $305,000