If Joe Donaldson deposited $80,000 in a bank account, purchased a company for $60,000 cash (Building $40,000 and Inventory $20,000), performed services for clients for $10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash, what is the company's net income for the month?

Question

Quizplus · Accepted Answer

Net income = Revenues - ExpensesRevenues = $10,000 (services performed for clients)Expenses = $5,000 (supplies purchased) + $2,000 (utilities paid) = $7,000Net income = $10,000 - $7,000 = $3,000

If Joe Donaldson Deposited $80,000 in a Bank Account, Purchased