Daniels Company reports the following year-end account balances at December 31, 2017. Accounts payable $20,000 Inventory $40,000 Accounts receivable $40,000 Land $100,000 Bonds payable, long-term $250,000 Goodwill $10,000 Buildings $160,000 Retained earnings $115,000 Cash $50,000 Sales revenue $500,000 Common stock $100,000 Supplies inventory $5,000 Cost of goods sold $200,000 Supplies expense $20,000 Equipment $80,000 Wages expense $100,000 What is Daniels' net income for 2017?

Question

Aubrey Berg

Business

26 November, 10:02

Daniels Company reports the following year-end account balances at December 31, 2017. Accounts payable $20,000 Inventory $40,000 Accounts receivable $40,000 Land $100,000 Bonds payable, long-term $250,000 Goodwill $10,000 Buildings $160,000 Retained earnings $115,000 Cash $50,000 Sales revenue $500,000 Common stock $100,000 Supplies inventory $5,000 Cost of goods sold $200,000 Supplies expense $20,000 Equipment $80,000 Wages expense $100,000 What is Daniels' net income for 2017?

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Answers (1)

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Allison Salazar · Answer 1

Net Income 180,000

Explanation:

The net income will be calculate by subtracting the expenses from the sales revenue of the firm

Sales revenue 500,000

Cost of goods sold (200,000)

Gross Profit 300,000

Operating expenses

Supplies expense (20,000)

Wages expense (100,000)

Net Income 180,000