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?
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:
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.
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from Accounting 101: Financial AccountingChapter 2 / Lesson 2