Shelby's Music Reported Net Income of $35,000 for the Year

question 170

Short Answer

Shelby's Music reported net income of $35,000 for the year.During the year,it received $125,000 in revenues.Calculate the amount of expenses for the year.

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Definitions:

Sales

Sales refer to the total revenue a company generates from selling goods or services over a certain period, critical for assessing a company's performance and growth.

Deferred Income Tax Liability

A tax obligation due in the future for income that has been recognized in the financial statements before it is taxable.

Income Tax Expense

The cost to a company for its taxable income, calculated according to the applicable tax laws governing the period.

Accrued Vacation Benefits

The amount of vacation time earned by employees but not yet taken or paid out, often recorded as a liability on the employer's balance sheet.