Figgaro Company Inc A Calculate Net Income

question 50

Essay

Figgaro Company Inc.'s accounts and their balances, as of the end of August, are included below. All accounts have normal balances: $\begin{array}{c}\begin{array}{lc}\text { Accounts receiv able..... } & \$ 36,000 \\& \\\text { Equipment............ } & 59,000 \\\text { Service revenues earned. } & 75,000 \\\text { Rent exp ense ........... } & 3,600 \\\text { Office supplies......... } & 1,500 \\\text { Notes payable......... } & 22,000 \end{array}\begin{array}{cr} \text { Cash ................. } & \$ 28,000 \\\text { Common stock } & 1,000 \\\text { Advertising expense ...... } & 5,000 \\\text { Accounts payable........ } & 31,000 \\\text { Dividends.. } & 24,000 \\\text { Salaries expense......... } & 30,000 \\\text { Retained earnings....... } & 58,100 \end{array}\end{array}$
a. Calculate net income.
b. Determine the amount of retained earnings to be shown on the August 31 balance sheet.

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Definitions:

Amount of Influence

The degree or extent to which one individual or group can sway or alter the actions, beliefs, or attitudes of another.

Modify Past Behavior

The act of changing or altering one's previous actions or habits, typically motivated by the desire for improvement or as a response to new information or experiences.

Postdecisional Dissonance

The psychological discomfort experienced after making a difficult choice, often leading to regret or rationalization of the decision.

Bad Decision

A choice that leads to negative or undesired outcomes, often resulting from inadequate information, poor judgement, or a lack of foresight.