Summit Consulting Services started the year with total assets of $215,000 and total liabilities of $85,000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to $180,000 and $120,000, respectively. During the year, there were no new capital contributions, and the owner withdrew $35,000. Calculate Summit's net income for the year. a. $60,000. b. $180,000. c. $120,000. d. $25,000.

Summit Consulting Services started the year with total assets of $215,000 and total liabilities of $85,000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to $180,000 and $120,000, respectively. During the year, there were no new capital contributions, and the owner withdrew $35,000. Calculate Summit's net income for the year. a. $60,000. b. $180,000. c. $120,000. d. $25,000.

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...

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