I asked this question earlier and still unclear about the equation. The amount of expenses has to be found. Revenue 2028 $6000 Dividends declared $0 Expenses for 2028 $ Amount Unknown 1/1 RE $12000 12/31 RE $8000 Step 1 This is the equation I was given. Closing RE=Opening RE+ Net income loss-Dividends paid (How do you know it is a loss if you haven't even found the expenses amount yet??) Also why below is loss in parentheses below? I need to know why Net Income LOSS is used $8000=$12000+Net income loss-$0 Net Income Loss=$8000-$12000+$0 Net Income (loss)=-($4000) Step 2 Calculate expenses for 2028 Net Income LOSS=Revenues-Expenses -$4000=$6000+$4000 Expenses=$6000+$4000 Expenses=$10000
I asked this question earlier and still unclear about the equation. The amount of expenses has to be found. Revenue 2028 $6000 Dividends declared $0 Expenses for 2028 $ Amount Unknown 1/1 RE $12000 12/31 RE $8000 Step 1 This is the equation I was given. Closing RE=Opening RE+ Net income loss-Dividends paid (How do you know it is a loss if you haven't even found the expenses amount yet??) Also why below is loss in parentheses below? I need to know why Net Income LOSS is used $8000=$12000+Net income loss-$0 Net Income Loss=$8000-$12000+$0 Net Income (loss)=-($4000) Step 2 Calculate expenses for 2028 Net Income LOSS=Revenues-Expenses -$4000=$6000+$4000 Expenses=$6000+$4000 Expenses=$10000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I asked this question earlier and still unclear about the equation.
The amount of expenses has to be found.
Revenue 2028 $6000
Dividends declared $0
Expenses for 2028 $ Amount Unknown
1/1 RE $12000
12/31 RE $8000
Step 1
This is the equation I was given.
Closing RE=Opening RE+ Net income loss-Dividends paid
(How do you know it is a loss if you haven't even found the expenses amount yet??) Also why below is loss in parentheses below? I need to know why Net Income LOSS is used
$8000=$12000+Net income loss-$0
Net Income Loss=$8000-$12000+$0
Net Income (loss)=-($4000)
Step 2
Calculate expenses for 2028
Net Income LOSS=Revenues-Expenses
-$4000=$6000+$4000
Expenses=$6000+$4000
Expenses=$10000
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