Question

knowledge check 01 if assets total $45,000, expenses total $10,000, revenues total $35,000, and total stockholders’ equity equals $30,000, what is the amount of net income?

Answer 1

Net income is calculated by subtracting expenses from revenues. In this case, the net income is $25,000.

Step-by-step explanation:

Net income is the profit earned by a company after deducting all expenses from its revenues. In this case, the total assets are $45,000, the total expenses are $10,000, and the total revenues are $35,000. To find the net income, we can use the equation:

Net Income = Revenues - Expenses

Substituting the given values, we have:

Net Income = $35,000 - $10,000 = $25,000

Therefore, the amount of net income is $25,000.