Presented below are changes in all the account balances of Bramble Furniture Co. during the current year, except for retained earnings. Increase (Decrease) Increase (Decrease) Cash $70,360 Accounts Payable $ (52,610) Accounts Receivable (net) 48,300 Bonds Payable 84,270 Inventory 133,900 Common Stock 134,700 Investments (47,730) Paid-In Capital in Excess of Par-Common Stock 13,220 Compute the net income for the current year, assuming that there were no entries in the Retained Earnings account except for net income and a dividend declaration of $23,000 which was paid in the current year.

Question

Business

Rodney Miles

11 April, 14:55

Presented below are changes in all the account balances of Bramble Furniture Co. during the current year, except for retained earnings. Increase (Decrease) Increase (Decrease) Cash $70,360 Accounts Payable $ (52,610) Accounts Receivable (net) 48,300 Bonds Payable 84,270 Inventory 133,900 Common Stock 134,700 Investments (47,730) Paid-In Capital in Excess of Par-Common Stock 13,220 Compute the net income for the current year, assuming that there were no entries in the Retained Earnings account except for net income and a dividend declaration of $23,000 which was paid in the current year.

+1

Answers (1)

Know the Answer?

Goodman · Answer 1

The net income for the current year is $170,790

Explanation:

The computation of the net income is shown below:

= Increase in cash + Decrease in Accounts Payable + Increase in Accounts Receivable + Increase in Bonds Payable + Increase in inventory - Increase in common stock - Decrease in investments - Increase in paid-in capital + dividend declared

= $70,360 + 52,610 + $48,300 + $84,270 + $133,900 - $134,700 - $47,730 - $13,220 + $23,000

= $170,790