Maxine's Bakery recorded $220,000 in revenues, $165,000 in expenses, and $30,000 of dividends for the year.The company began the year with total assets of $190,000 and stockholder's equity of $87,000.
-Use the information above to answer the following question.What net income (loss)was reported by Maxine's Bakery for the year?

Question

Quizplus · Accepted Answer

Net income is calculated by subtracting total expenses from total revenues. In this case, Net Income = Revenues - Expenses = $220,000 - $165,000 = $55,000.

Dividends are not included in the calculation of net income.

Therefore, the correct answer is C) $55,000.

Maxine's Bakery Recorded $220,000 in Revenues, $165,000 in Expenses, and $30,000