cincinnati supply, co. is a local supplier to the kraft heinz company, which is the third - largest food and…

cincinnati supply, co. is a local supplier to the kraft heinz company, which is the third - largest food and beverage company in north america and the fifth - largest food and beverage company in the world. cincinnati supply, co. had the following accounts and balances at december 31:\naccount debit credit\ncash $20,000\naccounts receivable 6,000\nprepaid insurance 1,500\nsupplies 5,000\naccounts payable $500\ncommon stock 16,200\ndividends 1,000\nservice revenue 20,000\nutilities expense 2,000\nsalaries expense 1,200\ntotals $36,700 $36,700\nusing the information in the table, calculate cincinnati supply inc.s reported net income for the period.\n$15,300.\n$15,800.\n$32,000.\n$16,800.\n$10,300.
Answer
Explanation:
Step1: Identify revenue and expenses
Revenue = $20,000, Expenses = Utilities Expense+Salaries Expense.
Step2: Calculate total expenses
Total Expenses = $2,000 + $1,200 = $3,200.
Step3: Calculate net - income
Net Income=Revenue - Total Expenses = $20,000 - $3,200 = $16,800.
Answer:
$16,800