an you explain step by step how to calculate the net income for The period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Can you explain step by step how to calculate the net income for The period.
![### Accounting Table and Net Income Calculation
#### Accounts and Amounts Overview
Here is a table listing various financial accounts along with their corresponding amounts:
| # | Accounts | Amount | A, L, SE, R, E, or NA |
|----|------------------------|---------|-----------------------|
| 1 | Wages expense | $43,000 | |
| 2 | Common stock | $47,500 | |
| 3 | Accounts receivable | $55,500 | |
| 4 | Dividends paid | $19,000 | |
| 5 | Sales revenue | $267,000| |
| 6 | Inventory | $51,500 | |
| 7 | Wages payable | $14,000 | |
| 8 | Equipment | $175,000| |
| 9 | Cost of goods sold | $104,000| |
| 10 | Rent expense | $19,000 | |
| 11 | Income tax expense | $30,500 | |
| 12 | Cash | $62,500 | |
| 13 | Retained earnings | $56,500 | |
### Task
**B. Calculate net income for the period.**
To calculate the net income, use the following formula:
\[ \text{Net Income} = \text{Total Revenue} - \text{Total Expenses} \]
**Revenue:**
- Sales revenue: $267,000
**Expenses:**
- Wages expense: $43,000
- Cost of goods sold: $104,000
- Rent expense: $19,000
- Income tax expense: $30,500
Total Expenses:
\[ 43,000 + 104,000 + 19,000 + 30,500 = 196,500 \]
**Net Income Calculation:**
\[ 267,000 - 196,500 = 70,500 \]
Thus, the calculated net income for the period is **$70,500**.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d45b03e-ee0e-4ce3-8151-4ee8c8e67473%2F2543ed1f-c4ea-476c-a326-c98d485958e1%2Fqk1c0hk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Accounting Table and Net Income Calculation
#### Accounts and Amounts Overview
Here is a table listing various financial accounts along with their corresponding amounts:
| # | Accounts | Amount | A, L, SE, R, E, or NA |
|----|------------------------|---------|-----------------------|
| 1 | Wages expense | $43,000 | |
| 2 | Common stock | $47,500 | |
| 3 | Accounts receivable | $55,500 | |
| 4 | Dividends paid | $19,000 | |
| 5 | Sales revenue | $267,000| |
| 6 | Inventory | $51,500 | |
| 7 | Wages payable | $14,000 | |
| 8 | Equipment | $175,000| |
| 9 | Cost of goods sold | $104,000| |
| 10 | Rent expense | $19,000 | |
| 11 | Income tax expense | $30,500 | |
| 12 | Cash | $62,500 | |
| 13 | Retained earnings | $56,500 | |
### Task
**B. Calculate net income for the period.**
To calculate the net income, use the following formula:
\[ \text{Net Income} = \text{Total Revenue} - \text{Total Expenses} \]
**Revenue:**
- Sales revenue: $267,000
**Expenses:**
- Wages expense: $43,000
- Cost of goods sold: $104,000
- Rent expense: $19,000
- Income tax expense: $30,500
Total Expenses:
\[ 43,000 + 104,000 + 19,000 + 30,500 = 196,500 \]
**Net Income Calculation:**
\[ 267,000 - 196,500 = 70,500 \]
Thus, the calculated net income for the period is **$70,500**.
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