The following information relates to the Pierce Company (in thousands):
$\begin{array}{ll}
\text { Additional investment by Mr. Pierce } & \$5 \
\text { Sales revenue } & 150 \
\text { Net assets, begiming of year } & 100 \
\text { Distribution to Mr. Pierce } & 10 \
\text { Cost of goods sold } & 125 \
\text { Net assets, end of year } & 180
\end{array}$ Required:
Compute net income, using the financial capital maintenance approach.

Question

The following information relates to the Pierce Company (in thousands):
 $\begin{array}{ll}
\text { Additional investment by Mr. Pierce } & \$5 \
\text { Sales revenue } & 150 \
\text { Net assets, begiming of year } & 100 \
\text { Distribution to Mr. Pierce } & 10 \
\text { Cost of goods sold } & 125 \
\text { Net assets, end of year } & 180
\end{array}$ Required:
Compute net income, using the financial capital maintenance approach.

Quizplus · Accepted Answer

The Answer of The following information relates to the Pierce Company (in thousands):
 $\begin{array}{ll}
\text { Additional investment by Mr. Pierce } & \$5 \
\text { Sales revenue } & 150 \
\text { Net assets, begiming of year } & 100 \
\text { Distribution to Mr. Pierce } & 10 \
\text { Cost of goods sold } & 125 \
\text { Net assets, end of year } & 180
\end{array}$ Required:
Compute net income, using the financial capital maintenance approach.

The Following Information Relates to the Pierce Company (In Thousands)