Seuss Company determined its total sales were $500,000, salaries expense was $210,000, dividends paid were $15,000, rent expense was $25,000, other operating expenses were $13,000, and customers still owed $4,000 at the end of the year. How much is net income for the year?

Question

Quizplus · Accepted Answer

Net income is calculated as total sales minus total expenses. Total expenses include salaries expense ($210,000), rent expense ($25,000), and other operating expenses ($13,000), totaling $248,000. Net income is $500,000 - $248,000 = $252,000. Dividends and accounts receivable do not affect net income calculation.

Seuss Company Determined Its Total Sales Were $500,000, Salaries Expense