Josephine's Bakery Had the Following Assets and Liabilities at the Beginning

question 138

Essay

Josephine's Bakery had the following assets and liabilities at the beginning and end of the current year:
$\begin{array}{|l|r|r|} \hline& \text { Assets } & \text { Liabilities } \\\hline \text { Beginning of the year } & \$ 114,000 & \$ 68,000 \\\hline \text { End of the year } & 135,000 & 73,000\\\hline\end{array}$
If the owners invested an additional $12,000 in the business during the year,but no dividends were paid,what was the amount of net income earned by Josephine's Bakery during the current year?

---

Definitions:

Factory Overhead

Indirect manufacturing costs not directly linked to the production of goods, such as rent, utilities, and maintenance.

Direct Materials

Raw materials that can be directly traced to the production of a specific product.

Direct Labor

The labor or work performed by employees who are directly involved in the production of goods or services.

Nonmanufacturing Cost

Expenses not directly tied to the production of goods, such as administrative, sales, and marketing costs.