Question

Thompson Corporation began the year with cash of $ 141 comma 000 and land that cost $ 25 comma 000. During the year Thompson earned service revenue of $ 265 comma 000 and had the following​ expenses: salaries, $ 158 comma 000​; ​rent, $ 71 comma 000​; and​ utilities, $ 20 comma 000. At​ year-end Thompson​'s cash balance was down to $ 31 comma 000. How much net income​ (or net​ loss) did Thompson experience for the​ year?

Answer 1

Answer:

Thompson Corporation's net income for the year is $16,000

Explanation:

                              Amount in $                   Amount in $

Revenue                                                         265,000

Expenses

Salaries                       158,000

Rent                               71,000

Utilities                         20,000

Total Expense                                               (249,000)

Net income/(net loss)                                       16,000

Thompson Corporation's net income for the year is $16,000