The Changes in the Account Balances and the Following Additional

question 48

Essay

The changes in the account balances and the following additional information are taken from the accounts of the Coalition Co.

Dividends for 2015 were $82,500.There were no transactions in 2015 affecting retained earnings other than the dividends and net income.Calculate the 2015 net income.

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Definitions:

Department

A specialized functional area within an organization that focuses on specific tasks or responsibilities.

Profit Center Managers

Individuals responsible for overseeing a unit or department within an organization that directly contributes to its profit.

Revenues

Income generated from normal business operations and includes discounts and deductions for returned merchandise.

Costs

The amount of money or resources expended in order to obtain something or achieve a goal.