Moore Industries began operations on January 2, 2016, with an investment of $50,000 by each of its two stockholders.Net income for its first year of business was $240,000.Moore Industries paid a total of $100,000 in dividends to its stockholders during the year.

-Read the information about Moore Industries.If the company's revenues were $500,000 for the year ended December 31, 2016, how much were total expenses?
A) $160,000
B) $260,000
C) $640,000
D) $740,000

Question

Moore Industries began operations on January 2, 2016, with an investment of $50,000 by each of its two stockholders.Net income for its first year of business was $240,000.Moore Industries paid a total of $100,000 in dividends to its stockholders during the year.
​
-Read the information about Moore Industries.If the company's revenues were $500,000 for the year ended December 31, 2016, how much were total expenses?
A) $160,000
B) $260,000
C) $640,000
D) $740,000

Quizplus · Accepted Answer

Net income = Revenues - Expenses
Given, net income = $240,000
Revenues = $500,000
Dividends = $100,000
So, Expenses = Revenues - Net Income + Dividends
Expenses = $500,000 - $240,000 + $100,000
Expenses = $360,000
Therefore, total expenses were $360,000.

Moore Industries Began Operations on January 2, 2016, with an Investment