Gatto production services started the year with total assets of $120,000 and total liabilities of $65,000. the revenues and the expenses for the year amounted to $110,000 and $50,000, respectively. during the year, the company did not issue any common stock, but it distributed dividends of $70,000. calculate gatto's net income for the year.

Question

Business

Guest

7 April, 05:31

Gatto production services started the year with total assets of $120,000 and total liabilities of $65,000. the revenues and the expenses for the year amounted to $110,000 and $50,000, respectively. during the year, the company did not issue any common stock, but it distributed dividends of $70,000. calculate gatto's net income for the year.

+2

Answers (1)

Know the Answer?

Messiah Coleman · Answer 1

The only information relevant to find the net income is the revenues and the expenses, everything else was put there to trick you.

Net income = revenues - expenses

Net income = $110,000 - $50,000

Net income = $60,0000

The net income is $60,000.