Question

During the​ year,

FastWashFastWash

Corporation has

$250,000

in​ revenues,

$120,000

in​ expenses, and

$7,000

in dividend declarations and payments. Net income for the year​ was:

Answer 1

CALCULATION OF NET INCOME FOR THE YEAR
Revenues	$                 2,50,000
Less : Expenses	$                 1,20,000
Net income	$                 1,30,000
Retained Earnings
Opening Balance	0
Add: Net income of the year	$                 1,30,000
Less: Dividend Paid	$                       7,000
Closing Balance of Retained earnings	$                 1,23,000
Answer = Net Income = $ 130,000
Note: Divided declaration is made from retained earnings statement so this is not part
of expenses so not shown in revenue statement (Sown in seprate retained earnings