Respuesta :
The amount of net income reported on Sparty's income statement is (D) $30,870.
What is revenue?
- The total amount of income earned by the sale of goods and services connected to the principal operations of the firm is referred to as revenue in accounting.
- Commercial revenue is often known as sales or turnover.
- Some businesses make money by charging interest, royalties, or other fees.
What are dividends?
- A dividend is a profit distribution made by a corporation to its shareholders.
- When a corporation makes a profit or has a surplus, it can pay a portion of the earnings to shareholders as a dividend.
- Any money that is not dispersed is re-invested in the company.
To find the amount of net income reported on Sparty's income statement:
Use the following formula -
Net Income = Total Revenue - Total Expenses
Net income = 88,000 - 39,000 - 18,130 = $30,870
Therefore, the amount of net income reported on Sparty's income statement is (D) $30,870.
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Complete question:
Sparty Corporation has provided the following information for its most recent year of operation: Revenues earned were $88,000, of which $8,000 were uncollected at the end of the year. Operating expenses incurred were $39,000, of which $8,000 were unpaid at the end of the year. Dividends declared were $12,000, of which $1,000 were unpaid at the end of the year. Income tax expense is $18,130. What is the amount of net income reported on Sparty's income statement?
(A) $30,970
(B) $23,310
(C) $23,940
(D) $30,870
