Net Income

simm23 · #1 Jan 16, 2008, 04:49 PM

Total Assets 79,000
Total Liabilities 67,000

What's the net income assuming that there were no dividents for the year.

crash08 · Jan 16, 2008, 05:28 PM

With that little info I would say $12,000 (79,000 - 67,000)
But that would never real be the case in real life

simm23 · Jan 16, 2008, 05:53 PM

Quote:

Originally Posted by crash08

With that little info I would say $12,000 (79,000 - 67,000)
But that would never real be the case in real life

Well, I thought of that but that 12,000 would be classified as Owner's Equity...

Unless I missed something and Owner's Equity is Net Income?

maxutsa52 · Jan 16, 2008, 06:40 PM

Net Income is revenues minus the expenses. These are part of the Income statement not the balance sheet. The number of 12000 is just the owners equity.



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