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:

Product Class

A broad category of products that serve a similar function and are perceived by consumers as interrelated or substitutable.

NAICS Designation

A system for classifying North American business establishments for the purpose of gathering, analyzing, and publishing statistical data related to the U.S. economy.

Consumer Product

Goods or services that are purchased by individuals for personal or household use, rather than for industrial or commercial purposes.

Listerine Total Care

A brand of mouthwash that claims to offer multiple benefits, including cavity protection, restoration of minerals to enamel, and freshening breath, among others.