Sparty Corporation Has Provided the Following Information for Its Most

question 118

Multiple Choice

Sparty Corporation has provided the following information for its most recent year of operation: Revenues earned were $97,000,of which $9,000 were uncollected at the end of the year.
Operating expenses incurred were $39,000,of which $7,000 were unpaid at the end of the year.
Dividends declared were $11,000,of which $3,000 were unpaid at the end of the year.
Income tax expense is $17,400.
What is the amount of net income reported on Sparty's income statement?

• A)$32,900.
• B)$39,300.
• C)$33,600.
• D)$40,600.

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Definitions:

Alcoholism Treatment Programs

Structured medical or therapeutic interventions aimed at helping individuals overcome alcohol dependency and its associated challenges.

Benefits-Received Tax

A taxation principle stating that the amount of tax an individual pays should correspond to the level of government services they receive.

Net Worth

The total value of an individual's or organization's assets minus its liabilities, representing the financial health or value.

Assets

Valuable items, resources, or properties owned by an individual, corporation, or country, which have economic value and can be converted into cash.