A company began operations at the start of 2022. During the year, it made cash sales of $225,000 and credit sales of $750,000. $630,000 in cash from these credit sales was collected during the year. The company purchased land for $90,000 for a new location. Expenses totaled $508, 500, of which $450,000 was paid in cash. Dividends of $15,000 were paid to stockholders. What was income for 2022? Select one: a. $405, 000 b. $525,000 c. $ 451, 500 d. $466, 500 e. None of these are correct.

A company began operations at the start of 2022. During the year, it made cash sales of $225,000 and credit sales of $750,000. $630,000 in cash from these credit sales was collected during the year. The company purchased land for $90,000 for a new location. Expenses totaled $508, 500, of which $450,000 was paid in cash. Dividends of $15,000 were paid to stockholders. What was income for 2022? Select one: a. $405, 000 b. $525,000 c. $ 451, 500 d. $466, 500 e. None of these are correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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