Blossom Company began the year by issuing $76500 of common stock for cash. The company recorded...

Question:

Blossom Company began the year by issuing $76500 of common stock for cash. The company recorded revenues of $770000, expenses of $635000, and paid dividends of $40000.

What was Blossom's net income for the year?

Income Statement:

The income statement is one of the three main financial statements prepared by companies. The income statement presents total revenues, total expense, and net income (loss) for a period of time.

Answer and Explanation:

Answer: $135,000

Explanation:

The formula to calculate net income is:

Revenues - Expenses

$770,000 - $635,000 = $135,000

Revenues are amounts charged to customers in exchange for goods of services. Expenses are costs that are incurred during the process.


Learn more about this topic:

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What Is an Income Statement? - Purpose, Components & Format

from Accounting 101: Financial Accounting

Chapter 2 / Lesson 2
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