Martha Innocenzi Ito began the Innocenzi Company by investing $75000 of cash in the business. The company recorded revenues of $555000 expenses of $410000 and had owner drawings of $30000. What was Innocenzi's net income for the year?

Question

Quizplus · Accepted Answer

Net Income = Revenues - Expenses - Owner Drawings
Net Income = $555,000 - $410,000 - $30,000
Net Income = $115,000
Therefore, Innocenzi's net income for the year was $145,000 ($115,000 + $30,000 of owner's drawings). The correct answer is B.

Martha Innocenzi Ito Began the Innocenzi Company by Investing $75000