A company had the following information: $$\begin{array} { l r l r }
\text { Cash } & \$ 6,000 & \text { Sales } & \$ 142,000 \
\text { Depreciation expense } & 4,000 & \text { Dividends paid } & 3,000 \
\text { Prepaidrent } & 1,400 & \text { Rent expense } & 3,600 \
\text { Cost of goods sold } & 69,000 & \text { Wage expense } & 41,000
\end{array}$$ The net income for the period is_____.
A)$22,400
B)$23,800
C)$24,400
D)$26,800

Question

A company had the following information: $$\begin{array} { l r l r } 
\text { Cash } & \$ 6,000 & \text { Sales } & \$ 142,000 \
\text { Depreciation expense } & 4,000 & \text { Dividends paid } & 3,000 \
\text { Prepaidrent } & 1,400 & \text { Rent expense } & 3,600 \
\text { Cost of goods sold } & 69,000 & \text { Wage expense } & 41,000
\end{array}$$ The net income for the period is_____.
A)$22,400
B)$23,800
C)$24,400
D)$26,800

Quizplus · Accepted Answer

Net income is calculated by subtracting total expenses from total revenues. Here, total revenues are $142,000 (Sales). Total expenses include Cost of Goods Sold ($69,000), Depreciation Expense ($4,000), Rent Expense ($3,600), and Wage Expense ($41,000), summing up to $117,600. Subtracting total expenses from total revenues gives a net income of $24,400.

A Company Had the Following Information The Net Income for the Period Is_____