Sparty Corporation has provided the following information for its most recent year of operation: Revenues earned were $88,000, of which $8,000 were uncollected at the end of the year. Operating expenses incurred were $39,000, of which $8,000 were unpaid at the end of the year. Dividends declared were $12,000, of which $1,000 were unpaid at the end of the year. Income tax expense is $18,130. What is the amount of net income reported on Sparty's income statement

The total amount of income earned by the sale of goods and services connected to the principal operations of the firm is referred to as revenue in accounting.
Commercial revenue is often known as sales or turnover.
Some businesses make money by charging interest, royalties, or other fees.

What are dividends?

A dividend is a profit distribution made by a corporation to its shareholders.
When a corporation makes a profit or has a surplus, it can pay a portion of the earnings to shareholders as a dividend.
Any money that is not dispersed is re-invested in the company.

To find the amount of net income reported on Sparty's income statement:

Use the following formula -

Net Income = Total Revenue - Total Expenses

Net income = 88,000 - 39,000 - 18,130 = $30,870

Therefore, the amount of net income reported on Sparty's income statement is (D) $30,870.

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Complete question:

Sparty Corporation has provided the following information for its most recent year of operation: Revenues earned were $88,000, of which $8,000 were uncollected at the end of the year. Operating expenses incurred were $39,000, of which $8,000 were unpaid at the end of the year. Dividends declared were $12,000, of which $1,000 were unpaid at the end of the year. Income tax expense is $18,130. What is the amount of net income reported on Sparty's income statement?

(A) $30,970

(B) $23,310

(C) $23,940

(D) $30,870