Dynamic Production Services started the year with total assets of $130,000 and total liabilities of $50,000.The company is a sole proprietorship.The revenues and the expenses for the year amounted to $100,000 and $60,000,respectively.During the year,there were no new capital contributions and the owner withdrew $45,000.Calculate Dynamic's net income for the year.
A) $40,000
B) $100,000
C) $60,000
D) $130,000

Question

Quizplus · Accepted Answer

A) Net income = Revenues - Expenses
Net income = $100,000 - $60,000 = $40,000

Dynamic Production Services Started the Year with Total Assets of $130,000