Finney Company began the year with retained earnings of $100,000.During 2022, the company issued $80,000 of common stock for cash.The company recorded revenues of $740,000, expenses of $640,000, and paid dividends of $40,000.What was Finney's net income for the year 2022?
A)$60,000
B)$140,000
C)$100,000
D)$180,000

Question

Quizplus · Accepted Answer

Net income is calculated as revenues minus expenses. For Finney Company, net income is $740,000 (revenues) - $640,000 (expenses) = $100,000.

Finney Company Began the Year with Retained Earnings of $100,000