Eli's Electronic Repair Shop started the year with total assets of $300000 and total liabilities of $200000. During the year the business recorded $400000 in electronic repair revenues $300000 in expenses and Eli withdrew $50000. The net income reported by Eli's Electronic Repair Shop for the year was

Question

Quizplus · Accepted Answer

Net income is calculated as revenues minus expenses. Therefore, for Eli's Electronic Repair Shop, the net income is $400,000 (revenues) - $300,000 (expenses) = $100,000.

Eli's Electronic Repair Shop Started the Year with Total Assets