Tri Fecta, a partnership, had revenues of $377,000 in its first year of operations. The partnership has not collected on $46,200 of its sales and still owes $39,000 on $170,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $29,000 in salaries. The partners invested $43,000 in the business and $27,000 was borrowed on a five-year note. The partnership paid $2,970 in interest that was the amount owed for the year and paid $9,300 for a two-year insurance policy on the first day of business. Compute net income for the first year for Tri Fecta.
Tri Fecta, a partnership, had revenues of $377,000 in its first year of operations. The partnership has not collected on $46,200 of its sales and still owes $39,000 on $170,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $29,000 in salaries. The partners invested $43,000 in the business and $27,000 was borrowed on a five-year note. The partnership paid $2,970 in interest that was the amount owed for the year and paid $9,300 for a two-year insurance policy on the first day of business. Compute net income for the first year for Tri Fecta.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tri Fecta, a partnership, had revenues of $377,000 in its first year of operations. The partnership has not collected on $46,200 of its sales and still owes $39,000 on $170,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $29,000 in salaries. The partners invested $43,000 in the business and $27,000 was borrowed on a five-year note. The partnership paid $2,970 in interest that was the amount owed for the year and paid $9,300 for a two-year insurance policy on the first day of business.
Compute net income for the first year for Tri Fecta.
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