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3 December, 07:42

The financial records for Harold Corporation included the following information: Accounts receivable, $60,000Accounts payable, $20,000Cash, $25,000Common stock, $10,000 Dividends, $10,000Insurance expense, $5,000Salaries and wages expense, $50,000Sales revenue, $120,000Based on this information, how much was its net income?

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  1. 3 December, 08:10
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    Answer: Net Income = $65000

    Explanation:

    Given that,

    Accounts receivable = $60,000

    Accounts payable = $20,000

    Cash = $25,000

    Common stock = $10,000

    Insurance expense = $5,000

    Salaries and wages expense = $50,000

    Sales revenue = $120,000

    Net Income = Sales revenue - Salaries and wages expense - Insurance expense

    = $120,000 - $50,000 - $5,000

    = $65,000
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