Beginning Retained Earnings are $65,000;sales are $29,500;expenses are $33,000 and dividends paid are $3,500.How much is the net income or loss for the company?

Question

Quizplus · Accepted Answer

Net Income or Loss = Sales - Expenses - Dividends Paid
Net Income or Loss = $29,500 - $33,000 - $3,500
Net Income or Loss = -$7,000
The negative sign indicates a loss of $7,000. Therefore, the correct option is (B) (-$3,500).

Beginning Retained Earnings Are $65,000;sales Are $29,500;expenses Are $33,000 and Dividends