Sosa’s net income for 2018 was $204,000
The net income of Sosa company will be calculated as follows:
Net cash provided by Operating activities = $310,000
Depreciation on plant assets = $90,000
Amortization of patents = $16,000
Net income will now be:
= Net cash provided by Operating activities - Depreciation on plant assets - Amortization of patents
= $ 310,000 - $ 90,000 - $ 16,000
= $ 204,000
It should be noted that the dividend that was paid of $108,000 isn't considered since it's a financing activity.
In conclusion, Sosa’s net income for 2018 was $204,000
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