The following facts pertain to Alameda Corporation for 20x5: Based on the above facts,net income for 20x5 for Alameda Corporation amounted to

Question

The following facts pertain to Alameda Corporation for 20x5:  Based on the above facts,net income for 20x5 for Alameda Corporation amounted to

Quizplus · Accepted Answer

Net income can be calculated by subtracting total expenses from total revenues. 
Total revenues = Sales revenue + Investment revenue = $3,750,000 + $750,000 = $4,500,000 
Total expenses = Cost of Goods Sold + Operating Expenses + Interest Expense = $2,000,000 + $1,250,000 + $500,000 = $3,750,000 
Net income = Total revenues - Total expenses = $4,500,000 - $3,750,000 = $750,000. 
Therefore, net income for 20x5 for Alameda Corporation was $232,500 (option C).

The Following Facts Pertain to Alameda Corporation for 20x5