Answer Happy

Tri Fecta, a partnership, had revenues of $374,000 in its first year of operations. The partnership has not collected on $46,200 of its sales and still owes $38,400 on $185,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $33,000 in salaries. The partners invested $43,000 in the business and $21,000 was borrowed on a five-year note. The partnership paid $2.520 in interest that was the amount owed for the year and paid $9,200 for a two-year insurance policy on the first day of business. Compute net income for the first year for Tri Fecta. Multiple Choice, $148,880 $189,000 $233.720 $156,000