Please refer to the income statement for the answer to the example question. Suppose the business distributed $650,000 cash to its shareowners from its profit (net income) for the year. Is this cash disbursement treated as an expense?
|
Income Statement for Year |
|
|
Sales revenue |
$26,000,000 |
|
Expenses |
24,310,000 |
|
Net income |
$1,690,000 |