5. Tn Fecta, a partnership. had revenues of $366.000 in ts first year of operati

Question

5. Tn Fecta, a partnership. had revenues of $366.000 in ts first year of operations. The partnership has not collected on $46.700 of its sales and still owes $39,100 on $160,000 of merchandise It purchased There was no inventory on hand at the end of the year. The partnership paid $28,200 in salarles. The partners invested $40.000 in the business and $28,000 was borrowed on a five-year note. The partnership paid $3,080 in interest that was the amount owed for the year and paid $9.600 for a two-year insurance policy on the first day of business Compute net income for the first year for Tri Fecto $246.880 o $160,000 O $ 206.000 O $ 169.920

Explanation / Answer

Solution:

Hence last option is correct.

Computation of Net Income - Tri Facta Particulars Amount Revenues $366,000.00 Cost of goods sold $160,000.00 Gross profit $206,000.00 Expenses: Salaries expense $28,200.00 Interest expense $3,080.00 Insurance expense ($9,600/2) $4,800.00 Net Income $169,920.00

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.