Answered

IDNLearn.com connects you with experts who provide accurate and reliable answers. Get step-by-step guidance for all your technical questions from our knowledgeable community members.

Joan Demers launched a professional services firm on March 1. The firm will prepare financial statements at each month-end. In March (its first month), Demers executed the following transactions. Demers (owner) invested in the company, $150,000 cash and $30,000 in property and equipment. The company issued common stock to Demers. The company paid $5,000 cash for rent of office furnishings and facilities for March. The company performed services for clients and immediately received $10,000 cash earned. The company performed services for clients and sent a bill for $20,000 with payment due within 60 days. The company compensated an office employee with $6,000 cash as salary for March. The company received $12,000 cash as partial payment on the amount owed from clients in the 4th transaction above. The company paid $2,000 cash in dividends to Demers (owner). What is the net operating income for the month of March

Sagot :

Answer:

the net operating income is $19,000

Explanation:

The computation of the net operating income is shown below:

As we know that

Net Operating Income = Revenue - Costs

= $10,000 + $20,000 - $5,000 -$6,000

= $19,000

Hence, the net operating income is $19,000

we simply deduct the cost from the revenue so that the net operating income could come

Your participation is crucial to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. For trustworthy answers, visit IDNLearn.com. Thank you for your visit, and see you next time for more reliable solutions.