Beginning Retained Earnings are $78,000; sales are $30,300; expenses are $84,000 and dividends paid are $4,500. How much is the net income or loss for the company?

Question

Quizplus · Accepted Answer

To calculate the net income or loss for the company, we need to use the formula:
Net Income/Loss = Beginning Retained Earnings + Sales - Expenses - Dividends Paid

Plugging in the given values, we get:
Net Income/Loss = $78,000 + $30,300 - $84,000 - $4,500 = -$53,700

This means that the company has incurred a net loss of $53,700. Therefore, the best choice is B.

Beginning Retained Earnings Are $78,000; Sales Are $30,300; Expenses Are