Charlie's Chocolates' stockholders made investments of $50,000 and received dividends of $20,000.The company has revenues of $83,000 and expenses of $64,000.Calculate its net income.

Question

Quizplus · Accepted Answer

Net income is calculated by subtracting expenses from revenues. Therefore, net income = revenues - expenses = $83,000 - $64,000 = $19,000. Dividends paid to stockholders are not factored into the net income calculation.

Charlie's Chocolates' Stockholders Made Investments of $50,000 and Received Dividends