Answer:
$21,000
Explanation:
Preparation of income statement
Income statement of Pink Arrangements for the year ended December 31, 2018.
REVENUE:
Service Revenue 84,000
Less EXPENSE:
Insurance Expense (2,500)
Utilities Expense (1,500)
Rent Expense (12,000)
Salaries Expense (47,000)
NET INCOME 21,000
Therefore the Income statement of Pink Arrangements for the year ended December 31, 2018 will be shows the amount of $21,000
"A married couple, where both individuals work, earns in excess of $124,000 in year 2020. Both individuals are covered by qualified retirement plans. Which statement is TRUE regarding contributions to Individual Retirement Accounts for these persons?"
Answer:
The question is not complete. Let me explain Individual Retirement Accounts (IRA)
Explanation:
There are two types of Individual Retirement Accounts (IRA). These are the Roth IRA and the Traditional IRA.
The maximum contributions allowed to Roth IRAs for 2020 are $6,000 for investors younger than 50 and $7,000 for investors older than 50.
If you’re single and you have no workplace plan, or if you’re married and neither you nor your spouse has a workplace plan, you may fully deduct your IRA contribution--regardless of your income. However, if you don’t have an employer-sponsored plan, but your spouse has one, you may deduct the full amount if you’re married filing jointly, and your modified adjusted gross income (MAGI) is $196,000 or less.
For Traditional IRA, married couples filing jointly can take the full deduction if they make less than $104,000. If you collectively earn between $104,000 and $124,000, you can take a partial deduction. And if you earn more than $124,000, you may not deduct anything.For Roth IRA, single filers with modified adjusted gross income (MAGIs) ranging between $124,000 to $139,000 may contribute a reduced amount.Traditional IRAs are funded with pre-tax dollars, this means that you can write off the contribution during the year you make it. But this is governed by numerous factors.
Bill Buckely has split-limit 50/100/20 automobile liability insurance on his 2012 Subaru. Driving home from work in a snowstorm, he hit a Mercedes, slid into a guardrail, and knocked down a telephone pole. Damages to the Mercedes, the guardrail, and the telephone pole were $17,603, $3,136, and $9,659 respectively. How much will Bill's insurance company pay? How much will Bill be required to pay directly?
Answer: The answer is given below
Explanation:
It should be noted that the split limits approach is used by several auto insurance policies and this simply combines per person and occurrence approach.
For every accident, three dollars amount are being applied. The first limit is simply a per person limit which is the maximum amount that one injured person will get. The second limit is simply the per occurrence limit which is the maximum amount that all the injured persons will get while the third limit applies during the claim of property damage as it is the maximum amount that will be paid for damages by an insurer to property that results from the accident.
since the split is 50/100/20, it implies that $50,000 medical coverage for every injured person, $100,000 injury coverage for all accident victims and then $20,000 for property damage.
1. Bill's insurance company will pay $20000.
2. Amount Bill will pay:
= $17,603 + $3,136 + $9,659 - $20,000
= $30,398 - $20,000
= $10,398
Accounting Equation Annie Rasmussen is the owner and operator of Go44, a motivational consulting business. At the end of its accounting period, December 31, 2018, Go44 has assets of $625,790 and liabilities of $197,750. Using the accounting equation and considering each case independently, determine the following amounts.A. Annie Rasmussen, capital, as of December 31, 2018. 428,040B. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $98,870 and liabilities increased by $59,450 during 2019. 467,460C. Annile Rasmussen, capital, as of December 31, 2019, assuming that assets decreased by $49,440 and liabilities increased by 17,520 during 2019 400-500.D. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $82,600 and liabilities decreased $31,290 during 2019. 14,390E. Net income (or net loss) during 2019, assuming that as of December 31, 2019, assets were $913,200, liabilities were $148,580, and there were no additional investments or withdrawals. 660,210
Answer:
Go44
A. Annie Rasmussen, capital, as of December 31, 2018. 428,040
Capital = Assets - Liabilities
= $628,790 - 197,750
= $431,040
B. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $98,870 and liabilities increased by $59,450 during 2019. 467,460
Capital = Assets - Liabilities
= ($628,790 + 98,870) - (197,750 + 59,450)
= $727,660 - 257,200
= $470,460
C. Annile Rasmussen, capital, as of December 31, 2019, assuming that assets decreased by $49,440 and liabilities increased by 17,520 during 2019 400-500.
Capital = Assets - Liabilities
= ($628,790 - 49,440) - (197,750 + 17,520)
= $579,350 - 215,270
= $364,080
D. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $82,600 and liabilities decreased $31,290 during 2019. 14,390
Capital = Assets - Liabilities
= ($628,790 + 82,600) - (197,750 - 31,290)
= $711,390 - 166,460
= $544,930
E. Net income (or net loss) during 2019, assuming that as of December 31, 2019, assets were $913,200, liabilities were $148,580, and there were no additional investments or withdrawals. 660,210
Assets = Liabilities + Equity (Capital + Retained Earnings or Net Income or Loss)
= $913,200 = ($148,580 + $431,040 + Net Income)
Net Income = $913,200 - 579,620
= $333,580
Explanation:
Go44 Balance Sheet as of December 31, 2018:
Assets = $628,790
Liabilities 197,750
Equity = $431,040
b) Accounting equation is Assets = Liabilities + Equity. Equity includes owner's capital and accumulated profits (Retained Earnings).
c) The accounting equation shows that the value of Go44's assets will always be equal to the liabilities and equity.
According to the U.S. Census Bureau’s Current Population Survey, the mean and median 2014 income of people aged 25 – 34 years who had a bachelor’s degree but no higher degree were $ 44,167 and $ 51,754. Which of these numbers is mean and which is the median? Explain. A. The median is $51,754 and the mean is $44,167. This is because economic variables which pulls the median above the mean. B. The mean is $51,754 and the median is $44,167. This is because economic variables are usually skewed to the right, which pulls the mean above the median. C. The median is $51,754 and the mean is $44,167. This is because economic variables are usually skewed to the right, which pulls the median above the mean. D. The mean is $51,754 and the median is $44,167. This is because economic variables are are usually skewed to the left, usually skewed to the left, which pulls the mean above the median.
Answer:
B. The mean is $51,754 and the median is $44,167. This is because economic variables are usually skewed to the right, which pulls the mean above the median.
Explanation:
The mean income of $51,754 obtained from the 2014 income of people aged 25 - 34 years with only a bachelor's degree is the average incomes. It is obtained by adding all the incomes in the data set and then dividing by the number of values in the set. The median of $44,167 is the middle value when this data set is ordered from least to greatest while the mode is the number that occurs most often in the data set.
Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example. (If an amount reduces the account balance then enter with negative sign preceding the number e.g 15,000 or parentheses e.g. (15,000). Cash $-133 Net Income $0 (a) Purchased $133 of supplies for cash. (b) Recorded an adjusting entry to record use of $31 of the above supplies. (c) Made sales of $1,297, all on account. (d) Received $865 from customers in payment of their accounts. (e) Purchased equipment for cash, $2,528 (f) Recorded depreciation of building for period used,
Answer and Explanation:
The identification of the given transactions are as follows
Item cash net income
a -$133 -
Since the cash is paid so it would be shown in negative and no impact on the net income
b - -$31
Here the adjusting entry is passed for supplies so the expenses are increased which ultimately reduced the net income
c - $1,297
Since the sale is made so the same should be shown in the net income
d $865 -
Since cash is received so it shown in the positive amount
e -$2,528 -
Since the cash is paid so it would be shown in negative and no impact on the net income
f - -$610
Since there is depreciation, the expenses are increased which ultimately reduced the net income
The use of which tool of the Federal Reserve has the smallest impact on money supply levels?a. Open market operationsb. Discount ratec. Reserve requirementsd. Margin on securities
Answer: d. Margin on securities
Explanation:
Margin Requirements on securities are collateral that a trader must keep when they want to borrow money. The Fed can control money supply using this by increasing the margin requirement which would reduce the amount that the trader will have to trade with thereby reducing money supply.
This represents the least effective monetary tool of the 4 options listed for the simple reason that it mainly affects the stock market which is although big, is not big enough to match the influence of the other instruments of monetary policy.
The main economic influence that determines prices is:____.
A) the stock market.
B) supply and demand.
C) employment.
D) government spending.
E) interest rates
Answer:
B) supply and demand.
Explanation:
By using the supply and demand concept, the company is able to determine the prices. Here the relationship is lies between the commodity quantity in which the producers sells at different prices and how much quantity is to be purchased by the consumers. It is an important model for determining the price. When the supply and the demand meet at a point it is known as the equilibrium point at this the quantity supplies is equivalent to the quantity demanded
hence, the option B is correct
Red font in the opening information is used to:_________
Answer: a. draw your attention to important input requirements.
Explanation:
The color red is a very visual color that attracts attention to it. This is why most signs that warn of danger are painted in red.
As the color draws attention, its purpose in the opening information is to draw the attention of the reader to important input requirements so that they will not miss it.
Which of the following best describes the value of creating a high-level view of the process? A. A detailed process map aids in the discovery of process issues B. A bird's eye view of the process helps with understanding the process at a glance C. The Spaghetti Map helps illustrate the movement in a process D. Being able to see rework and other detail helps understand process cycle time
Answer: C. The Spaghetti Map helps illustrate the movement in a process
Explanation: During process analysis which usually involves mapping and detecting the occurrence of changes within a system with time. In other to make the best possible breakthrough, using a spaghetti flow mapping may be employed which involves the creation of a visual representation or flow of the entire process involved in a certain activity usually depicted by various line graphs in one single chart. This chart is aimed at promoting effectiveness of a process by eliminating redundancy and identifying areas of possible improvement.
(Chemical Manufacturing) A chemical manufacturer produces a certain chemical compound every Sunday, which it then sells to its customers on Monday through Saturday. The company earns a revenue of $80 per kg of the compound sold. Each kg manufactured costs the company $40. If any of the compound goes unsold by Saturday night, it must be destroyed safely, at a cost of $15 per kg. The total demand for the chemical compound throughout the week has a normal distribution with a mean of 260 kg and a standard deviation of 80 kg.a) How much of the chemical compound should the company produce every Sunday?b) What is the expected cost (including manufacturing cost, lost profit, and disposal cost) per week?
Answer:
The answer is "244 kg and $9,760".
Explanation:
Income in per kg = $80
designing and producing costs per kg= $40
Earn revenue per kg = $40 (that is often recognized as the expenses) and the sum of the company would not be allowed if the consumer has no kg of the product.
Overstocking cost in per kg = $40 production cost + $15 disposal cost
= $55
the corporate amount should be borne if additionals kg is generated.
In potion A:
Due to regular transfer, the optimal quantity of data must not be generated per week = [tex]\mu +Z\times \sigma[/tex] ([tex]\mu[/tex]= average demand, Z = normal distribution score, and [tex]\sigma[/tex] = standard deviation).
[tex]Z =\frac{\ Understocking \ Cost}{\ Understocking \ Cost +\ Overstocking \ Cost}[/tex]
Each Saturday the company of chemicals composites shall produce = 244
In potion B:
Weekly estimated cost
[tex]= \text{Maximum weekly order (244 kg)} \times \ Production \ overhead \ per \ kg (\$ 40)}\\[/tex]
[tex]= \$ 9,760[/tex]
Remember, an agency relationship can degenerate into an agency conflict when an agent acts in a manner that is not in the best interest of his or her principal. In large corporations, these conflicts most frequently involve the enrichment of the firm's executives or managers (in the form of money and perquisites or power and prestige) at the expense of the company's shareholders. This usurping and reallocation of shareholder wealth is most likely to occur when shareholders do not have sufficient information about the decisions and actionsbeing made by the firm's management Consider the following scenario and determine whether an agency conflict exists: Jacob owns Jacob's Tantalizing Tees, a T-shirt shop in a small college town in Virginia. With a staff of three part-time employees, Jacob operates the business in accordance with his personal goals, dreams, and capabilities. Does Jacob have an agency conflict to deal with? a. Yes; as both the owner and operator of Jacob's Tantalizing Tees, Jacob has created the necessary agency relationship through which an agency conflict can exist. b. No; by having part-time, as opposed to full-time, employees, Jacob is prevented from experiencing an agency conflict. c. Yes; there is always an inherent conflict of interest between owners and operators (managers). d. No; as both the owner and operator of Jacob's Tantalizing Tees, Jacob has not created the necessary agency relationship through which an agency conflict can exist.
Answer:
Statement C.
Explanation:
In every business shareholders invests their money and hire some great potential managers so that the business runs smooth even without their presence.
The shareholder is the owner, and that the manager is the employee who works on the direction of shareholders. Accordingly there is an inbuilt relationship of an agent and principal.
Agent = managers
Principal = Shareholders
And there is an inherent risk as the managers might not agree to certain terms of shareholders and vice-e-versa. But even both of them cannot work without each other.
Use the starting balance sheet and the list of changes to create an updated balance sheet.Valley TechnologyBalance SheetAs of December 31, 2017(amounts in thousands)Cash 22,000 Liabilities 36,000Other Assets 28,000 Equity 14,000Total Assets 50,000 Total Liabilities & Equity 50,000Valley TechnologyIncome StatementJanuary 1 to March 31, 2018(amounts in thousands)Revenue 7,200Expenses 3,600Net Income 3,600Between January 1 and March 31, 2018:
1. Cash decreases by $200,000
2. Liabilities decrease by $100,000
3. Paid-In Capital does not change
4. Dividends paid of $400,000
What is the value for Other Assets on March 31, 2018?
Answer:
$31,300,000
Explanation:
cash account balance = 22,000,000 - 200,000 (cash decrease) = 21,800,000
total liabilities balance = 36,000,000 - 100,000 (decrease in liabilities) = 35,900,000
equity balance = 14,000,000 - 400,000 (dividends) + 3,600,000 (net income) = 17,200,000
total assets = 35,900,000 + 17,200,000 = 53,100,000
other assets = total assets - cash = 53,100,000 - 21,800,000 = 31,300,000
When an investor accounts for an investment in common stock at fair value through net income, cash dividends are classifies by the investor as:_________
A) A return of capital
B) A loss
C) A deduction from the investment account
D) Dividend income
Answer: dividend income
Explanation:
When an investor accounts for an investment in common stock at fair value through net income, cash dividends are classifies by the investor as dividend income.
The fair value of an asset is simply the sale price that is agreed upon by a buyer and seller, with the assumption that both of them enter the transaction without bias and are both knowledgeable. Based on the above scenario, the cash dividends are classifies by the investor as dividend income.
True or False Liability protection covers both personal liability and the medical expenses of anyone accidentally injured on your property.
Answer:
True
Explanation:
Homeowner's personal liability insurance protects against personal accidents that can happen in your house as long as they are not intentional. The coverage includes accidents that happen to visitors including:
medical billspain and sufferinglost wagesdeath benefitslegal costsWhat are 2 relevant settings related to Projects?A. Track inventory quantity on handB. Show Items table on expense and purchase formsC. Track expenses and items by customerD. Create multiple partial invoices from a single estimateE. Track billable expenses and items as income in multiple accounts
Answer:
TWO relevant settings related to projects are
(A) and (C)
Explanation:
Two of the relevant settings related to projects - among the options given - are:
(A) Track inventory quantity on hand
Materials, not just humans, are involved in every project. The Project Manager will need to track inventory-on-hand (presently available materials or goods) from time to time; to know when there is a shortage, excess, or a need for specific goods.
(C) Track expenses and items by customers
The Administrator, Invoice Manager, or Project Manager will track the expenses or items bought/returned by customers. Money spent by customers is to be tracked and recorded.
the money you borrow from a bank is called
Answer: it is called a loan
Explanation:
Citizens are allowed to act in their own self-interest when given __________. A. job security B. political stability C. economic freedom D. government restrictions
Answer:
c
Explanation:
Answer:
C.Job security
Explanation:
did the quiz edge 2020
Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January 2018. In December, Handy announced $200,000 net income for 2018 and declared and paid a cash dividend of $2 per share on all 200,000 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2018 would be:
Answer:
Zwick Company's dividend revenue = $56,000
Explanation:
Given:
Shares by Zwick Corporation = 28,000
Handy announced dividend per share = $2
Find:
Zwick Company's dividend revenue
Computation:
Zwick Company's dividend revenue = Shares by Zwick Corporation × Handy announced dividend per share
Zwick Company's dividend revenue = 28,000 × $2
Zwick Company's dividend revenue = $56,000
Taxes help prices communicate costs and benefits to producers and consumers.
a) true
b) false
Answer:
The correct answer is the option B: False.
Explanation:
To begin with, the taxes are financial charges that are imposed upon a taxpayer with the only purpose to increase the incomes of the government who are mainly taxes. Therefore that the taxes will never be or communicate a benefit nither to producers or consumers in any form or type that they could be. The taxes will only help the government to increase its income and to pay for the expenditures and therefore that it will never help to communicate nither costs or benefits to producers or consumers.
The insurer may suspect that a moral hazard exists if the policyholder:______.
a. is not honest about his health on an application for insurance.
b. is prone to depression.
c. is indifferent to activities that may be dangerous.
d. always drives over the speed limit.
Answer:
a. is not honest about his health on an application for insurance.
Explanation:
The moral hazards refer to the hazard that arises when the applicants do not tell the truth at the time of filling the application form for the insurance or in the past they claimed some amount which is totally fraud against to an insurer
So in case when the insurer may suspect whether there is an existence of moral hazard so the honesty regarding with the health for insurance should be taken as relevant pant
Therefore the option a is correct
A takeover is an attempt to seize control of a corporation by purchasing the majority of its outstanding stock.
A. True
B. False
Answer:
A. True.
Explanation:
Organizations sometimes makes a bid to take control of another company by acquiring them, through the purchase of majority of the stocks or outstanding shares in the company to be acquired. Where the above is successful, the process is known as takeover.
In a takeover, the company that is being taken over is the target company, while the company taken over the target is the acquirer. A larger company may take over the smaller company through mutual agreement .
Takeover occurs when a larger company is trying to initiate a change in the smaller company by making it more profitable. They may also find value in the smaller company hence the takeover and also to eliminate competition.
Unlike tangible goods,virtually all services are susceptible to inconsistency and variations in quality.Why is this so?A) Because services depend on people for their delivery.B) Because services cannot be managed due to their intangibility.C) Because services are extremely time-and-place dependent.D) Because service marketers cut corners to reduce expenses.E) Because service marketers make unrealistic promises to customers.
Answer:
A) Because services depend on people for their delivery.
Explanation:
Given that the same or similar type of services are or can be carried out by various personnel, and the level of quality of the rendered services is dependent on the skills and professionalism of the person who rendered such services.
Hence, Unlike tangible goods, virtually all services are susceptible to inconsistency and variations in quality, because services depend on people for their delivery.
Therefore, the right answer is Option A. the
forest management defination
Answer:
It is the process of controlling the use or exploitation of forested land.
Answer:
the people who works to preserve and protect the animal and forest is called forest manager
Alissa quickly expresses her frustration. She says, "Just recently I found out the executives got incredibly large bonuses and I thought there was no more money. This is very frustrating…and I don't understand why you wouldn't tell me the truth." At this moment, Alissa is most likely to experience what type of noise as she decodes messages?
Answer: d. psychological noise
Explanation:
Psychological noise refers to the distortion of information due to the distraction on the part of either the speaker or the listener borne from them having biases or preconceived notions.
Alissa is already upset with the person she is talking to as she believes that they hid information from her so regardless of what the person says, she will probably interpret it with the notion that the person is lying or rather hiding the truth.
Complete the following sentence: If people think that the price of televisions will decrease in the near future, that belief may cause a(n):__________
a. decrease in the quantity demanded for televisions today.
b. decrease in the demand for televisions today.
c. increase in the supply of televisions today.
d. increase in the price of televisions today.
Answer:
b. decrease in the demand for televisions today.
Explanation:
Since it is generally believed that, consumers buy more quantity of a particular commodity or product when the price of such commodity is lower and that they buy less, when the price is higher, which is a simple illustration of the law of demand.
Therefore, if people think that the price of televisions will decrease in the near future, that belief may cause a "decrease in the demand for televisions today."
CPAs become involved in a variety of types of engagements. For each of the following statements, indicate whether it relates to an examination (E), review (R), or agreed-upon procedures (A) engagement. If the statement does not relate to examinations, reviews, or agreed-upon procedures, reply N.
Statement
Type of Engagement
a. When financial statements are involved, this is referred to as an audit.
b. The term "We are not aware of any material modifications that should be made" is often included in the report.
c. The report issued provides a summary of procedures followed and findings.
d. The report issued provides "reasonable assurance."
e. The procedures involved are generally limited to inquiry and analytical procedures.
f. The report issued provides "absolute assurance."
g. The report issued provides "limited assurance."
h. The procedures followed are agreed upon with the specified user or users.
i. This type of engagement provides more assurance than a review.
j. The CPA need not be independent to perform this service.
Answer:
a. Examination
b. Review
c. Agreed upon procedures
d. Examination
e. Reviews
f. None
g. Reviews
h. Agreed upon procedures
i. Examination
j. None
Explanation:
Examinations are meant to provide higher level of assurance in audits, in order to provide detailed view and opinion on the audit area.
Reviews are meant to provide the certificate of approval that financial reporting framework is followed or not, or whether their is no material change in the financial statements etc:
Under agreed upon procedures the CPA is to report on some specific areas agreed with the management to report upon rather than complete financial statements.
Remaining explanation:
In f. absolute assurance can never be provided as even in examination there are certain limitations which are inherent in the procedure.
In j the statement provides no independence which is not available condition in any engagement.
-What factors determine an individual’s ethics. For you, which factor has been the most significant?
Answer:
Individual's Cultural/Familys Ethics. Individuals Religion. Individuals Experiences. And Societal pressures. The Factor that has contributed most to my morals is Religous Background and Societal Pressure.
Explanation:
An individuals own ethics is largely founded upon what they are taught to value. This foundation begins at a young age, but is subject to change over time and experience. The first foundation of ethics is what your family values or what you are are taught to value. The second factor is Religion or world view. Everyone has a god or God all religions though will have a moral law. Societal pressure or what society thinks is ethically Just will pressure ones own ethics.
Deanne is a vocal critic of socialism. She likes to point out that in recent years the governments in many socialistic nations have cut back on government services and have reduced taxes. Deanne believes that this trend will ultimately result in all nations adopting pure capitalistic ideals. Recent evidence suggests that Deanne's views are essentially correct.
a. True
b. False
Answer: False
Explanation:
Socialism is a theory that posits that production, and distribution, of goods and services should be in charge of the government. This is quite different from capitalism which advocates for the individuals to be in charge.
Even though it is true that governments of many socialistic nations have cut back on government services and have reduced taxes, this doesn't mean that all nations are adopting pure capitalistic ideals according to Deanne.
She's incorrect because there are still some elements of socialism and government interference, hence, such economies are regarded as mixed economies as they've attributes of both capitalism and socialism.
Deanne's observations is untrue as government involvement in free market economies is being ignored by her.
A certain company has an acid test ratio of 0.97. This implies which of the following?1. Current liabilities are less than the quick assets of the company.
2. Current liabilities are greater than the quick assets of the company.
3. Current liabilities are greater than the current assets of the company.
4. Current liabilities are less than the current assets of the company.
Answer: 2. Current liabilities are greater than the quick assets of the company.
Explanation:
The acid-test ratio is a method of checking if the company has enough quick assets ( most liquid current assets) to enable it cover its current liabilities.
It is calculated by dividing the current assets less the inventory by the current liabilities. A ratio of 0.97 therefore means that the denominator which are the current liabilities are more than the quick assets of the company.
Prepare the income statement of Centerpiece Arrangements for the year ended December 31, 2018.Centerpiece Arrangements has just completed operations for the year ended December 31, 2018. This is the third year of operations for the company. The data below have been assembled for the business:Insurance Expense $2,500Service Revenue 84,000Utilities Expense 1,500Rent Expense 12,000Common Stock 5,500Cash 5,800Retained Earnings, January 1, 2018 4,700Salaries Expense 47,000Accounts Payable 600Office Supplies 1,900Dividends 4,500Accounts Receivable 7,000Equipment 12,600Prepare the income statement of Pink Arrangements for the year ended December 31, 2018.
Answer:
Income statement for the year ended December 31, 2018.
Service Revenue $84,000
Less Expenses :
Insurance Expense $2,500
Utilities Expense $1,500
Rent Expense $12,000
Salaries Expense $47,000 ($63,000)
Net Income / (Loss) $21,000
Explanation:
The Income Statement shows the Profit or Loss arising from operating activities of the company during the year. Profit or Loss = Revenue less Expenses.