For the Following Independent Situations, Determine the Amount of Net

question 118

Essay

For the following independent situations, determine the amount of net income or net loss.
a)Revenues for the year were $200,000 and expenses were $103,000. The owner withdrew $40,000 for personal use and made an additional investment of $30,000 during the year.
b)Revenues for the year were $249,000 and expenses were $136,000. The owner withdrew $55,000 for personal use and made no additional investments.
c)Revenues for the year were $154,000 and expenses were $189,000. The owner made an additional investment of $90,000 and withdrew $67,000 for personal use.
d)Revenues for the year were $150,000 and expenses were $101,000. The owner made no withdrawals during the year but invested $20,000 cash during the year into the business.

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Definitions:

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the market price they actually pay.

Producer Surplus

The difference between the amount producers are willing to sell a product for and the amount they actually receive, representing a measure of producer welfare.

Ruby

A precious gemstone known for its vibrant red color, commonly used in jewelry and as an industrial abrasive.