Answer:
Net income = $74,050
Explanation:
To answer this question, we have to first classify the particulars into either income or expenditure, and find their difference. If income is more than expenditure, profit is made,but if expense is more, loss is made.
Income:
Retained earnings = $ 48,960
Dividends = $ 5,100
service revenue = $ 63,750
other comp. income =$ 410
Total = $ 118,220
Expenses
Advertising expense = $ 1,840
Rent expense = $ 10,610
utilities expense = $ 3,160
Salaries and wages = $ 28,560
Total = $ 44,170
Since the total income is more than total expense, profit was made, hence the net income = Total income - Total expense
= 118,220 - 44,170 = $74,050
