Sparty Corporation Has Provided the Following Information for Its Most

question 23

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 30% of pretax income.
How much net income was reported on Sparty's income statement?

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

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Definitions:

Engineering Change Notice

A document used in engineering and manufacturing that outlines modifications to a product's design or manufacturing process.

BOM

Bill of Materials; a comprehensive list detailing the materials, parts, and components needed to manufacture a product.

Bill Of Material

A comprehensive list detailing all materials, parts, and assemblies required to manufacture a product.

Material Requirements Planning

A computer-based inventory management system used to manage manufacturing processes by determining material requirements and scheduling production.