Thompson Corporation began the year with cash of $ 141 comma 000 and land that cost $ 25 comma 000. During the year Thompson earned service revenue of $ 265 comma 000 and had the following expenses: salaries, $ 158 comma 000 ; rent, $ 71 comma 000 ; and utilities, $ 20 comma 000. At year-end Thompson 's cash balance was down to $ 31 comma 000. How much net income (or net loss) did Thompson experience for the year?

Question

Kaila Bond

Business

16 January, 20:32

Thompson Corporation began the year with cash of $ 141 comma 000 and land that cost $ 25 comma 000. During the year Thompson earned service revenue of $ 265 comma 000 and had the following expenses: salaries, $ 158 comma 000 ; rent, $ 71 comma 000 ; and utilities, $ 20 comma 000. At year-end Thompson 's cash balance was down to $ 31 comma 000. How much net income (or net loss) did Thompson experience for the year?

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Answers (1)

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Giancarlo Sawyer · Answer 1

Thompson Corporation's net income for the year is $16,000

Explanation:

Amount in $ Amount in $

Revenue 265,000

Expenses

Salaries 158,000

Rent 71,000

Utilities 20,000

Total Expense (249,000)

Net income / (net loss) 16,000

Thompson Corporation's net income for the year is $16,000