During 2018, a company provided services for cash of $33,600 and services on credit of $24,000. The company collected accounts receivable of $12,800 and incurred operating expenses of $36,320, $22,400 of which were paid during the year. The amount of net income (loss) for the year is:

Question

Maleah Chen

Business

29 December, 02:17

During 2018, a company provided services for cash of $33,600 and services on credit of $24,000. The company collected accounts receivable of $12,800 and incurred operating expenses of $36,320, $22,400 of which were paid during the year. The amount of net income (loss) for the year is:

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Jameson Wilkerson · Answer 1

net income = $21280

Explanation:

The amount of net income for the year 2018 is calculated as follows:

The cash and credit services provided by the company would be added and the operating expenses of the company would be deducted.

Net income for the year = Total services (Cash and credit provided) - Operating expenses incurred

= ($33,600 + $24,000) - $36,320

= $21280.