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-   -   Net Income (https://www.askmehelpdesk.com/showthread.php?t=279788)

  • Nov 11, 2008, 03:24 PM
    BChapman
    Net Income
    If I was given the Balance Sheet that included the following...

    Cash 81,600
    Accounts Receivalbe 31,300
    Supplies 2,000

    Accounts Payable 13,280

    Capital Stock 15,000

    HOW DO I FIND THE NET INCOME?
  • Nov 11, 2008, 06:01 PM
    plonak

    Well as you might know Assets=Liabilities+Stockholders equity right? Net income is soposed to be closed out to the balance sheet, on the Stockholders equity side called Retained Earnings

    So my assumption is that your teacher wants you to plug if that's the only information given..

    So assets = 114,900
    Liabilities+ SH Equity= 28,280
    So you net the two to get the net income (114,900-28280) =86,620
    So net income is 86,620
    Get it?

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