Deal Mart
The 2014 income statement of Deal Mart shows operating revenues of $130,800, selling expenses of $37,100, general and administrative expenses of $34,900, interest expense of $900, and income tax expense of $11,430.Deal Mart's stockholders' equity was $280,000 at the beginning of the year and $320,000 at the end of the year.The company has 20,000 shares of stock outstanding at December 31, 2014.
-Read the information about Deal Mart.What is Deal Mart's net income?

Question

Quizplus · Accepted Answer

Net income is calculated as operating revenues minus all expenses. Therefore, $130,800 (operating revenues) - $37,100 (selling expenses) - $34,900 (general and administrative expenses) - $900 (interest expense) - $11,430 (income tax expense) = $46,470.

Deal Mart The 2014 Income Statement of Deal Mart Shows Operating Revenues