Sparty Corporation has provided the following information for its most recent year of operation: Revenues earned were $90,000, of which $6,000 were uncollectible at the end of the year. Operating expenses incurred were $49,000, of which $6,000 were unpaid at the end of the year. Dividends declared were $12,000, of which $3,000 were unpaid at the end of the year. Income tax expense is 35% of pretax income. How much net income was reported on Sparty's income statement? a. $18,850 b. $26,750 c. $20,800 d. $26,650

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
icon
Related questions
Question

Hii expert please given answer general accounting question

Sparty Corporation has provided the following
information for its most recent year of operation:
Revenues earned were $90,000, of which $6,000 were
uncollectible at the end of the year. Operating
expenses incurred were $49,000, of which $6,000
were unpaid at the end of the year. Dividends
declared were $12,000, of which $3,000 were unpaid
at the end of the year. Income tax expense is 35% of
pretax income.
How much net income was reported on Sparty's
income statement?
a. $18,850
b. $26,750
c. $20,800
d. $26,650
Transcribed Image Text:Sparty Corporation has provided the following information for its most recent year of operation: Revenues earned were $90,000, of which $6,000 were uncollectible at the end of the year. Operating expenses incurred were $49,000, of which $6,000 were unpaid at the end of the year. Dividends declared were $12,000, of which $3,000 were unpaid at the end of the year. Income tax expense is 35% of pretax income. How much net income was reported on Sparty's income statement? a. $18,850 b. $26,750 c. $20,800 d. $26,650
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning