Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Using the following information, compute NET INCOME. Cost of Goods Sold $ 6,000

ID: 2498711 • Letter: U

Question

Using the following information, compute NET INCOME.

Cost of Goods Sold                                                               $ 6,000

Interest Expense                                                                        1,100

Selling and Administrative Expense                                         750

Cash                                                                                                400

Sales                                                                                          10,000

Accrued Wages Payable                                                             250

Dividends                                                                                       700

Retained Earnings (beginning)                                                1,000

Income Tax Expense                                                               1,200

  $1,350

  $950

  $1,700

  $700

  $1,950

  $1,350

  $950

  $1,700

  $700

  $1,950

Explanation / Answer

Therefore, the Net inocme is $950.

Therefore, the correct answer is option B.

Compute the Net Income Particulars Amount($) Sales 10000 Less: Cost of Goods sold -6000 Gross profit 4000 Less: Interest Expense -1100 Selling and distribution expense -750 Income tax Expense -1200 Net Income 950