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    stylo_67846's Avatar
    stylo_67846 Posts: 2, Reputation: 1
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    #1

    Feb 19, 2008, 02:13 PM
    Net income or net loss
    Revenues for the year totaled $85,500 and expenses totaled $120,500, the owner withdrew $30,000 during the year... determine the amount of net income or net loss
    stylo_67846's Avatar
    stylo_67846 Posts: 2, Reputation: 1
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    #2

    Feb 19, 2008, 02:16 PM
    Quote Originally Posted by stylo_67846
    revenues for the year totaled $85,500 and expenses totaled $120,500, the owner withdrew $30,000 during the year.......determine the amount of net income or net loss
    I am not sure but look like 6500 net loss
    sitaki's Avatar
    sitaki Posts: 3, Reputation: 0
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    #3

    Feb 19, 2008, 02:49 PM
    Its actually net loss of 65,000
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    sitaki Posts: 3, Reputation: 0
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    #4

    Feb 19, 2008, 02:51 PM
    You simply take the total revenue which is 85,500 subtract your expenses which is 120,500 which gives you 35,000 you still have to remember the 30,000 that was taken by the company, so subtract that, and you should get -65,000
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #5

    Feb 20, 2008, 02:09 PM
    Net income/(loss) is determined only by subtracting expenses from revenues.

    Drawing is not related to net income. Drawing comes out of equity, which does reduce the amount of increase to equity. But it's not directly related to net income itself. That is only how much the company earned over its expenses. A drawing is how much the owner removes from the company
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