Gatto production services started the year with total assets of $120,000 and total liabilities of $65,000. the revenues and the expenses for the year amounted to $110,000 and $50,000, respectively. during the year, the company did not issue any common stock, but it distributed dividends of $70,000. calculate gatto's net income for the year.

Question

Heidi Bishop

Business

12 April, 08:09

Gatto production services started the year with total assets of $120,000 and total liabilities of $65,000. the revenues and the expenses for the year amounted to $110,000 and $50,000, respectively. during the year, the company did not issue any common stock, but it distributed dividends of $70,000. calculate gatto's net income for the year.

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Shayna · Answer 1

The only information relevant to find the net income is the revenues and the expenses, everything else was put there to trick you.

Net income = revenues - expenses

Net income = $110,000 - $50,000

Net income = $60,0000

The net income is $60,000.