Gatto Production Services started the year with total assets of $90,000 and total liabilities of $40,000.The revenues and the expenses for the year amounted to $130,000 and $80,000,respectively.During the year,the owner did not make any additional contributions,but had withdrawals of $55,000.Calculate Gatto's net income for the year.
A)$50,000
B)$130,000
C)$80,000
D)$90,000

Question

Quizplus · Accepted Answer

A)Net income = Revenues - Expenses
Net income = $130,000 - $80,000 = $50,000

Gatto Production Services Started the Year with Total Assets of $90,000