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
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...
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdedf5a67-f58b-4c84-8fd9-2cb5dc201d3e%2Fe75c3ded-96c1-4d63-a430-ce1f7a5f6f54%2Fth3fmi8_processed.jpeg&w=3840&q=75)
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
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
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](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
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](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning