Seikoson
The 2017 income statement of Seikoson shows operating revenues of $130,800, selling expenses of $37,100, general and administrative expenses of $34,900, interest expense of $900, and income tax expense of $11,430. Seikoson’s stockholders’ equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at December 31, 2017.

-Read the information about Cobb Company.What is Cobb's net income?
A)$1,600
B)$2,000
C)$2,200
D)$2,800

Question

Seikoson
The 2017 income statement of Seikoson shows operating revenues of $130,800, selling expenses of $37,100, general and administrative expenses of $34,900, interest expense of $900, and income tax expense of $11,430. Seikoson’s stockholders’ equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at December 31, 2017.

-Read the information about Cobb Company.What is Cobb's net income?
A)$1,600
B)$2,000
C)$2,200
D)$2,800

Quizplus · Accepted Answer

To calculate Cobb's net income, we need to use the formula:

Net Income = Total Revenue - Total Expenses

Net Income = $9,000 - $6,800
Net Income = $2,200

Therefore, the correct answer is (C) $2,200.

Seikoson the 2017 Income Statement of Seikoson Shows Operating Revenues of of $130,800