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31 October, 16:49

Vaughn Manufacturing is a private camping ground near the Mount Miguel Recreation Area. It has compiled the following financial information as of December 31, 2017. Service revenue (from camping fees) $168,960 Dividends $11,520 Sales revenue (from general store) 32,000 Notes payable 64,000 Accounts payable 14,080 Expenses during 2017 161,280 Cash 10,880 Supplies 7,040 Equipment 145,920 Common stock 51,200 Retained earnings (1/1/2017) 6,400 Determine Vaughn Manufacturing's net income for 2017. Vaughn Manufacturing's net income for 2017 $enter a net income amount

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  1. 31 October, 17:15
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    The Vaughn Manufacturing's net income for 2017 is $39,680

    Explanation:

    The computation of the net income is shown below:

    In simple form, the net income equals to

    = Total revenue - total expenditure

    = Service revenue (from camping fees) + Sales revenue (from general store) - Expenses during 2017

    = $168,960 + $32,000 - $161,280

    = $39,680

    The other items which are mentioned in the question are irrelevant. Therefore, these are ignored for the computation part
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