Question
Marcos Company reported the following items on its financial statements for the year ending December 31, 2017: Sales $560,000 Cost of goods sold $410,000 Salary
Marcos Company reported the following items on its financial statements for the year ending December 31, 2017:
| Sales | $560,000 |
| Cost of goods sold | $410,000 |
| Salary expense | 40,000 |
| Interest expense | 30,000 |
| Dividends | 20,000 |
| Income tax expense | 25,000 |
How much will be reported as net income on Marcos balance sheet at December 31, 2017, if this is the first year of operations?
|
| a. | $55,000 |
|
| b. | $65,000 |
|
| c. | $85,000 |
|
| d. | Not enough information is provided. |
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
