Sunny Corporation began the year with cash of $ 141, 000 and land that cost $ 55, 000. During the year Sunny earned service revenue of $ 250 comma 000 and had the following expenses: salaries, $ 190 comma 000 ; rent, $ 80,000 ; and utilities, $ 28,000. At year-end Sunny 's cash balance was down to $ 15 comma 000. How much net income (or net loss) did Sunny experience for the year?

Question

Business

Arturo Arnold

26 September, 21:35

Sunny Corporation began the year with cash of $ 141, 000 and land that cost $ 55, 000. During the year Sunny earned service revenue of $ 250 comma 000 and had the following expenses: salaries, $ 190 comma 000 ; rent, $ 80,000 ; and utilities, $ 28,000. At year-end Sunny 's cash balance was down to $ 15 comma 000. How much net income (or net loss) did Sunny experience for the year?

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Answers (1)

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Madilynn Maldonado · Answer 1

Net Loss experienced during the year = ($48,000)

Explanation:

Provided information we have,

Revenue for the year = $250,000

Costs incurred during the year

Salaries = $190,000

Rent = $80,000

Utilities = $28,000

Total cash cost = $298,000

Thus, net income or (loss) = Total Revenue for the year - Total cost for the year

Thus, Net Income or (Loss) = $250,000 - $298,000 = ($48,000)

Therefore, Net Loss experienced during the year = ($48,000)