Question 7

Johnnys Car Repairs had total assets of $60 000 and total liabilities of $40 000 at the beginning of the year. During the year the business recorded $100 000 in revenues, $55 000 in expenses, and dividends of $10 000 were distributed. Profit reported by Johnnys Car Repairs for the year was:

$20 000.

$90 000.

$35 000.

$45 000.