Tax multiplier amount = -9.00.Real GDP changed or increased by $9 billion. Less than $1 billion in spending would be required by the government. The explanation is that the tax multiplier's absolute value is bigger than the expenditure multiplier's absolute value, which is 10.
MPC = 1 - 0.90 = 0.10 MPS = Marginal Propensity to Save = 1 MPC = 1 - 0.90 = 0.10
As a result, we have:
The tax multiplier is equal to MPC / MPS, which is 0.90 / 0.10, or -9.00.Reduced tax X=-$1 billion
Tax multiplier equals -9.00.
Amount of change or growth in real GDP equals a decrease in taxes, multiplied by a -$1 tax multiplier.Multiplier for expenses = 1/ MPS = 1/ 0.10 = 10Real GDP growth is equal to the change in government spending multiplied by the expenditure multiplier (1). Solve for by substituting the appropriate values into equation (1). Government spending has changed.We possess.Change in government spending of $9 billion $9 billion / 10 = $0.90 billion in changes to government spending in one year.Given that the expenditure multiplier produced a change in government spending of $0.90 billion, this suggests that less than $1 billion in expenditures would be required.
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carol calculates that the total cost of serving 200 customers per day would be $1,600. what is the marginal cost of this increase in customers?
Carol calculates that the total cost of serving 200 customers per day would be $1,600 and 14 is the marginal cost of this increase in customers.
Marginal cost is that the cost to provide one extra unit of production. it's a vital conception in accounting as incremental cost helps verify the foremost economical level of production for a producing method. it's calculated by determinant what expenses square measure incurred if just one extra unit is factory-made.
Cost of serving is that the activity of value factors that go in the service of a client, or the assembly of a product. once paired with revenue, value to serve analysis allows you to accurately calculate gain by client, product sorts, production lines, facilities, processes.
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for the year ended december 31, 2021, norstar industries reported net income of $970,000. at january 1, 2021, the company had 1,090,000 common shares outstanding. the following changes in the number of shares occurred during 2021: apr. 30 sold 90,000 shares in a public offering. may 24 declared and distributed a 5% stock dividend. june 1 issued 102,000 shares as part of the consideration for the purchase of assets from a subsidiary.
Required: Compute Norstar's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do not round intermediate calculations. Round "EPS" answer to 2 decimal places.) Numerator Denominator = Earnings per Share = $ 0.64
The earnings per share for Norstar is 0.77 as per the given information
Earnings per share is a financial ratio which helps investors decide whether they will invest in a company or not. EPS computes the relationship between the net income and the common stock, which means that how much of net income is attributable to one share of common stock.
Date Shares outstanding allocation rate Weighted average no. of shares
Jan. 1 1,090,000 x 1.05 12/12 1,144,500
Apr. 30 90,000 x 1.05 8/12 63,000
May. 31 Stock dividend of 5%
Jun. 1 102,000 7/12 59,500
Total WACSO 1,267,000
NUMERATOR DENOMINATOR EARNINGS PER SHARE
970000 1,267,000 0.77
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environmental sustainability in supply chain management includes product and process issues that affect human safety and welfare, community development, and protection from harm.
Sustainable Supply Chain environmental sustainability in supply chain management includes product and process issues that affect human safety and welfare, community development, and protection from harm.
What does supply chain management's environmental sustainability entail?A sustainable supply chain protects people and the environment along the entire chain by implementing socially and ecologically responsible practices at every level. This indicates that a company follows environmental and social standards in both its own operations and those of its suppliers.
Additionally, a sustainable supply chain increases productivity while generating cost savings. You may significantly reduce the cost of operating buildings, vehicles, and machines by employing sustainable practices and resources.
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based on an inventory count, the inventory is debited to merchandise inventory and credited to income summary. multiple choice question. average balance ending balance beginning balance need help? review these concept resources.
Based on an inventory count, the ending balance inventory is debited to Merchandise Inventory and credited to income summary.
What is ending balance inventory?Ending balance inventory can be defined as the amount of inventory that a company has in their warehouse at the end of their accounting period.
On the other hand beginning balance inventory is the reverse of ending balance inventory as it is the amount of inventory that a company has in their warehouse at the beginning of an accounting period.
On an inventory count of an organization , the ending balance inventory is debited to Merchandise Inventory account and as well credited to income summary account.
Therefore the correct option is B.
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amdd has 7 percent preferred stock outstanding that is currently selling for $49 a share. the market rate of return is 14 percent and the firm's tax rate is 37 percent. what is the firm's cost of preferred stock?
Amdd has 7 percent preferred stock outstanding that is currently selling for $49 a share. the market rate of return is 14 percent and the firm's tax rate is 37 percent. 14.29 percent is the firm's cost of preferred stock.
Preferential stock: What is it?One sort of stock that combines elements of bonds and equities is preferred stock. Preferred shares pay out cash dividends like bonds do, frequently at a greater yield than bonds while carrying less risk than regular stock and larger dividend returns.
How are preferred stocks traded?By paying dividends, preferred stocks provide a consistent flow of revenue. The dividend payments on preferred shares are fixed and typically range from 5 to 7 percent, and are typically greater than bond payments. They are furthermore paid out after bondholders get their payments but before dividends on common shares.
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5) if rrr(required reserve ratio) is larger, is the money multiplier bigger or smaller? why? explain based on the formula. ( 2 points)
If banks lend more than their reserve requirement allows, their multiplier rises, resulting in more money supply. If banks lend less, their multiplier will be lower, and the money supply will be reduced as well.
What do you know about Money supply?
The money supply (or money stock) is the total amount of currency held by the public at any given time. There are several ways to define "money," but standard measures typically include currency in circulation (i.e., physical cash) and demand deposits (depositors' easily accessible assets on financial institutions' books). A country's central bank may use a definition of what constitutes legal tender for its own purposes. Money supply data is recorded and published, typically by a government agency or the country's central bank. Changes in the money supply are monitored by public and private sector analysts because it is believed that such changes affect the prices of securities, inflation, exchange rates, and the business cycle.
So, If banks lend less, their multiplier will be lower, and the money supply will be reduced as well.
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Apocalyptica Corporation is expected to pay the following dividends over the next four years: $6.70, $17.70, $22.70, and $4.50. Afterward, the company pledges to maintain a constant 5.5 percent growth rate in dividends, forever.If the required return on the stock is 9 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Current share price is $368.57
It is given that dividends over four years are 6.7,17.7,22.7,4.5
Growth rate = 5.5%
Required rate of return = 9%
The current share price (P₀) = D₁÷(k-g)
where,
D₁ = Expected dividend for the next years
k = required rate of return
g = growth rate
Thus,
current share price (P₀) = D₁÷(k-g)
D₁ = average of all the dividends of 4 years = (6.7+17.7+22.7+4.5)/4
=$12.9
current share price (P₀) = 12.9 / (9%-5.5%)
= 12.9 / 3.5%
= 12.9/0.035
= $368.57
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a system that gathers comprehensive data, organizes it, and summarizes it in ways that are useful to managers for their nonroutine tasks is known as a(n) system.
A system that gathers comprehensive data, organizes it, and summarizes it in ways that are useful to managers for their non routine tasks is known as an operation information system.
It is safe to assume that the word being defined is an operational information system based on the information supplied in the question. In a nutshell, this is a system that a business uses to efficiently conduct all of its everyday business activities.
In order to provide the managers with the most complete data possible, the information is quickly collected, arranged, and summarized in an independent manner.
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A system that gathers comprehensive data, organizes it, and summarizes it in ways that are useful to managers for their non routine tasks is known as an operation information system.
They consider ongoing, daily operations as well as what must be done to fulfil urgent requests and short-term objectives. It is safe to assume that the word being defined is an operational information system based on the information supplied in the question. In a nutshell, this is a system that a business uses to efficiently conduct all of its everyday business activities. In order to provide the managers with the most complete data possible, the information is quickly collected, arranged, and summarized in an independent manner.
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laser corporation had $275,000 in invested assets, sales of $330,000, operating income amounting to $33,000, and a desired minimum return on investment of 7.5%. the return on investment (rounded to one decimal place) for blaser corporation is
By dividing operating revenue by invested assets, the rate of return on investment is calculated. Due to the fact that the operating income is $33,000 and invested assets total $275,000 Consequently, a 12% rate of return on investment is realized.
It establishes the quantity of investment return in relation to investment cost. It may be stated as a ratio or percentage. By dividing an investment's return by its cost, the return on investment is calculated.
The management is able to choose the most profitable investment option available to them thanks to the return on investment of various assets. To calculate the return on investment, use the data regarding operational income and invested assets.
Use the calculation below to get the rate of return on investment:
Rate of return = operating income / invested assets
= 33000 / 275000
= 12%
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a fire destroyed furniture and fixtures used in jock's business. jock's adjusted basis in the furniture and fixtures was $81,300. jock received a $100,000 reimbursement from his insurance company and immediately spent $93,000 to purchase new furniture and fixtures, and used the rest of the insurance proceeds to pay operating expenses. how much gain or loss must jock recognize on this involuntary conversion?
A fire destroyed furniture and fixtures used in jock's business. jock's adjusted basis in the furniture and fixtures was $81,300. jock received a $100,000 reimbursement from his insurance company and immediately spent $93,000 to purchase new furniture and fixtures, and used the rest of the insurance proceeds to pay operating expenses. how much gain or loss must jock recognize on this involuntary conversion? $11700.
Purchase price of new equipment = $93000
Adjusted basis of furniture and fixtures destroyed =$81300
Gain on conversion = $93000 - $81300 = $11700.
Repayment is repayment paid through an organization for out-of-pocket expenses incurred or overpayment made by an employee, client, or any other birthday celebration. repayment of business costs, insurance fees, and overpaid taxes are commonplace examples. however, in contrast to standard reimbursement, compensation isn't always situation to taxation.
KEY TAKEAWAYS
Compensation is money paid to an worker or client, or another celebration, as compensation for a business expense, insurance, taxes, or different expenses.
Business price reimbursements include out-of-pocket prices, inclusive of those for tour and food.
In line with diem fees are every day fees paid to personnel as compensation for enterprise journeys.
Tax refunds are a form of reimbursement from the authorities to taxpayers.
Organizations have a vested interest in ensuring that reimbursements are only supplied for valid reasons.
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1) what kinds of monetary policy(easy or tight) should be exercised under the recessionary gap? give examples of policy tools in terms of rrr(required reserve ratio), dr(discount rate) and omp(open market policy) (2 points).
Under the recessionary gap, an easy policy should be implemented Because the economy is already in recession, the government should implement simple policies that stimulate aggregate demand and assist the economy in returning to its optimum production.
What is the monetary policy?Monetary policy is the policy implemented by a country's monetary authority to manage either the interest rate on very short-term borrowing or the money supply.
Some examples regarding the policy tools are as:
During the recession, the Federal Reserve reduced the required reserve ratio for banks. As a result, the banks have retained greater surplus reserves, and they may now lend more at lower interest rates, thereby increasing aggregate demand in the economy. During a recession, the Fed lowers the discount rate. The discount rate is the rate at which commercial banks can get short-term loans from the Fed.When the discount rate is lower, commercial banks may borrow from the Fed and expand their lending at lower interest rates, resulting in a rise in aggregate demand in the economy, which is critical for the economy.Learn more about the monetary policy, refer to:
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FILL IN THE BLANK. ______When starting to explore the JOB MARKET; spend a few minutes on Dice or Monster tofind IT jobs in your area. Get a feel for the needs of the market
When first starting to investigate the job market., do some searching; spend a few minutes on Dice or Monster to find IT jobs nearby. Understand the market's requirements.
The Market: What Is It?The place where both employers and job seekers conduct their searches is known as the job market. The notion of the job market, which illustrates the competitiveness and interaction between various labor forces, is more important than any actual location. The labor market is another name for it. This year, employment growth increased by an average of 407,000 jobs per month as opposed to 562,000 in 2021. As soon as December, according to Fed Chair Jerome Powell, the American central bank may slow the rate of rate rises.
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sue earns income of $80,000 per year. her average tax rate is 50 percent. sue paid $5,000 in taxes on the first $30,000 she earned. what was the marginal tax rate on the first $30,000 she earned, and what was the marginal tax rate on the remaining $50,000?
The marginal tax rate on the remaining $50,000. Tim's second income that he earned throughout the year will incur the following tax obligation. The right response is 50%.
21,000 - (20%*30,000) = 21,000 - 6,000 = $15,000 is the tax on a second income.Taxes paid on second income divided by the amount of second income earned during the year is the marginal tax rate on second income.Marginal tax rate: 15%, 30%, and 50% The gross income in this example is $33,333 since it is the amount that every employee earns before taxes and social security contributions are deducted.$30,000 represents the total amount won over the course of the year after 10% is deducted for taxes (in this case, $3,333).Tax on second income equals 21,000-(20%*30,000)-21,000-6,000 =$15,000 Second income tax rate, second income tax paid, and second income earned for the year
Marginal tax rate = 15/30 = 50%.
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maxwell manufacturing issued $310,000, 9-year, 11% bonds at 105.25. what is the total amount of interest expense that will be recorded over the life of these bonds?
Maxwell Manufacturing will record the total amount of interest expense of $290,625 over the life of the bonds.
What is bond's interest expense?An interest expense in bond, means aggregate interest expense incurred during a reporting period for an organization's bonds payable.
Data available:
Bonds' Face Value = $310,000
Maturity period = 9 years
Coupon Interest Rate = 11%
Issuance rate = 105.25
Bonds Proceeds:
= $310,000 x 1.0525
= $326,275
Bonds Premium (to be amortized over 12 years):
= $326,275 - $310,000
= $16,275
Annual cash payments to bondholders:
= $310,000 * 11%
= $34,100
Total cash payments to bondholders:
= $34,100 * 9
= $306,900
Expense that will be recorded:
= $306,900 - $16,275
= $290,625
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select the correct answer from each drop-down menu. choose the correct way term to complete each sentence on goods and services. ida has many errands to do today. first, she goes to a department store to try on some shirts. a shirt is an example of a(n) because it is . next, she goes to a restaurant to eat lunch. she could have gone to the grocery store to buy food for the entire week, but she chooses to sit and relax. however, as soon as she leaves the restaurant, the relaxing moment is over. this is because the restaurant experience is a and it is .
Services are defined as intangible advantages that are offered, whereas goods are tangible commodities that can be purchased for a fee. However, they both give the buyer value and enjoyment.
Tangible and intangible assets fall into two different groups. Tangible assets, such as computer equipment, are often tangible assets or property that a corporation owns. The primary asset class used by businesses to produce their goods and services are tangible assets.
Commodities are movable items that can be exchanged for other movable items, money, or both. They are goods that are offered for sale commercially.
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question 2 electronic stability control reduces the risk of rollover crashes, such as are common with suvs. a) true b) false
It is true that electronic stability control lowers the danger of rollover collisions, which are frequent in SUVs.
What is a commercial illustration of risk?Harm brought on by a natural disaster, as a fire or a flood. unforeseen economic loss imposed on by a downturn in the economy or the demise of a business you owe money to. substantial loss of suppliers or customers. The loss of market share is due to new competitors or products.
What does risk look like?Any chance—high or low—that a danger may actually cause harm to someone is a risk. Working alone outside of your office, for instance, might present risks. Potentially high personal risk exists. Electric wiring is dangerous.
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julia roberts has a bond issue outstanding that matures in four years. the bonds pay interest semiannually. currently, the bonds are quoted at 102.3 percent of face value and carry a coupon rate of 9 percent. what is the firm's after tax cost of debt if the tax rate is 35 percent?
Bond price =C*[1-(1+YTM)^-n / YTM] + [P/(1+YTM)^n]
Where,
C= Coupon amount =1000*9%*6/12 =45
YTM = Yield To Maturity
n = Number of periods =4*2 =8
P= Par value
Bond price =$1000*102.3% =1023
$1023=45 * [1 - (1 + YTM)^-8 / YTM] + [1000 / (1 + YTM) ^8]
$1023/45= * [1 - (1 + YTM)^-8 / YTM] + [1000 / (1 + YTM) ^8]
$22.7333= * [1 - (1 + YTM)^-8 / YTM] + [1000 / (1 + YTM) ^8]
YTM =4.16%
YTM(Annually)= 4.16 * 2 = 8.31%
After-tax cost of debt = cost of debt ×(1-tax rate)
=0.0831× (1-0.35)
=0.0831× 0.65
=5.4 %
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differences in information, also called , explain why firms respond differently to situations. group of answer choices information asymmetry information symmetry information contrast information congruence
The differences in information is also called as (b) Information Asymmetry explains why firms respond differently to different situations.
What is Information Asymmetry?A mismatch in the understanding of important facts and specifics between the two negotiating sides is known as information asymmetry. The side with more information typically has a competitive edge over the opposing party due to this imbalance.
How can information asymmetry be managed?Enhancing company investment efficiency is required to lessen the effects of the information asymmetry issue. Investment institutions should feel more accountable for disseminating accurate information, and related incentive and penalty policies may be developed.
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Government securities guarantee fixed payments and set intervals. If the demand for money declines, however, the value of these securities declines as well.Drop down:business risk; financial risk; interest rate risk; liquidity risk; market risk; purchasing power risk
The type of risk that will see the value of securities dropping due to the demand for money declining, is interest rate risk.
What is interest rate risk?Interest rate risk is the risk that the value of fixed payment investments such as government securities, could lose value if the interest rates in the market decreased and there was therefore a loss of demand.
This is why the risk that the value of government securities decreases, when there is a lower demand for money, falls under interest rate risk.
In conclusion, the risk involved when the value of securities fall is interest rate risk.
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supplier-buyer transactions between corporations carried out over internet connections are examples of transactions.
Supplier-buyer transactions between corporations carried out over internet connections are examples of B2B transactions.
Buyer-supplier relationships are commercial transactions involving the purchase and supply of goods or services between organizations. To select the best product or service for a specific category of expenditure, a sourcing or tender process is used.
Because of the pressure to increase quality, reduce inventory, develop just-in-time systems, and reduce time to market, many procurers are developing single-source suppliers, which is an important phenomenon related to buyer-supplier relationships. The end goal of developing these capabilities is to save money.
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a product that requires the learning of entirely new consumption patterns among consumers is referred to as a(n)
Discontinuous innovation is the term used to describe a product that requires consumers to learn whole new consumption habits.
Why is innovation sporadic?Discontinuous Innovation: Products are offered to customers that need them to alter their usual behavior. For instance, Sony recently unveiled a new high-definition television that would not work with current broadcasting standards, necessitating the use of alternative sources of programming.
Discontinuous product: what is it?Advanced features that aren't available in current goods and can't be obtained by extending existing technologies are involved in discontinuous products. The benefits of the product that the consumer or user perceives and experiences are referred to as part of the product capability dimension.
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which is a form of direct marketing that involves tracking and analyzing the purchase patterns of specific customers?
Answer: Database Marketing
Explanation:
In a project monitoring system, data collected from ____ activity duration, resource usage, and costs are compared against ____ activity duration, resource usage, and costs.
In a project monitoring system, data collected from resources activity duration, resource usage, and costs are compared against project activity duration, resource usage, and costs.
In order to develop the project schedules, the scheduling process requires examining the activity sequences, activity resource estimations, and activity length estimates.The outcomes of the previous step are arranged to create the project's final schedule during the development schedule process. In this essay, the definition of the development schedule process and its goals are explored in great detail.Prior to creating the project schedule model, an analysis of activity sequences, durations, resource needs, and scheduling constraints is required.You will have a finalised project plan once the development schedule process is complete, which will include details like the beginning and ending dates of each project activity.
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b. suppose that while melissa was on the coast, she also spent two days sightseeing the national parks in the area. to do the sightseeing, she paid $1,650 for transportation, $1,035 for lodging, and $320 for meals during this part of her trip, which she considers personal in nature. what amount of the total costs can melissa deduct as business expenses?
Suppose that while melissa was on the coast, she also spent two days sightseeing the national parks in the area. to do the sightseeing, she paid $1,650 for transportation, $1,035 for lodging, and $320 for meals during this part of her trip, which she considers personal in nature. what amount of the total costs can Melissa deduct as business expenses? $0
None of the cost for sightseeing is deductible, because the primary purpose of the trip was business. She is not allowed to deduct any personal expenses like, meals, lodging, and transportation during sight visit.
Therefore, the amount of travel cost Mellissa deduct as business expenses is $0
Sightseeing is the hobby of going to a new vicinity and sorting out all the sights and cool capabilities of that area. walking around Atlantic city finding out the casinos and boardwalk is an example of sightseeing.
The definition of a capability is some thing that someone or aspect is able to do. whilst someone can cook dinner, this is an example of a situation where he has the functionality to cook dinner. when a pc can open a file, this is an example of a state of affairs wherein the pc has the capability to open the report.
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if you invest $500 each month at an annual rate of 7%, in how many month will it become $300,000? the answer could be in decimals.
If you invest $500 each month at an annual rate of 7%, in 11.02 month it will become $300,000. To answer this, we need compound interest formula.
Here the equation is :
A= P[1+(r/n)]^(n*t)
Variable meaning:
A: Amount
P: Initial amount
R: Interest rate (decimal)
N: Number of times interest is compounded per year
T: Time (years)
Given in the question:
A = 300,000
P = 500
R = .07 (remember that when turning percent to decimal you move the decimal 2 to the left)
N = 12 (because there are 12 months a year)
T = ?
Plug into the equation:
300000 = 500 [1+ (0.07/12)] ^(12t)
Solve:
300000/500 = (1.05)^12t
600 = (1.05)^12t
Apply log on both sides,
log(600) = 12t log( 1.05)
2.778 = 12t*0.021
2.778/0.021 = 12t
13.28 = 12t
t = 11.02
Therefore, if you invest $500 every month for 11.02 months then the investment should total $300,000.
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the main reason independent central banks are better at fighting inflation than politically controlled banks is because they
Independent central banks are better at dealing with inflation than policy-controlled banks, because they regulate the flow of money with the help of various instruments
Advantages of the Independence of central banksThe independence of its members, which is nothing more than the limits imposed on politicians so as not to influence the composition of the board of directors of the central bank or its decisions.Financial independence, that is, the autonomy of central banks to be able to manage their operations and not be captive of government decisions.Independent central banks are not obliged to finance government spending and to be able to set their objectives or instruments.For more about central banks here https://brainly.com/question/29547955
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consider the data in the table. the price of gasoline is $3.99 per gallon at the gas station. if rexhall fuel supplies is a rational seller, how many gallons of gasoline should this seller be willing to sell? 20 million gallons per week 42 million gallons per week 30 million gallons per week 14 million gallons per week
Rexhall Fuel Supplies would be prepared to sell 20 million gallons each week if they were a rational vendor. As a result, choice (A) is the appropriate approach.
What is gasoline?The majority of spark-ignited internal-combustion engines use clear, combustible liquid gasoline as their primary fuel source (also known as petrol engines).
It mostly comprises organic compounds made from petroleum fractional distillation that has been improved with various additions. A typical barrel of crude oil yields 19 to 20 gallons of gasoline, 11 to 13 gallons of distillate fuel, the majority of which is sold as diesel fuel, and 3 to 4 gallons of jet fuel at U.S. refineries.
Hence, option (A) is accurate.
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the standard of living varies greatly among groups within a country as well as from nation to nation.
Yes, it is true that the standard of living varies greatly among groups within a country as well as from nation to nation.
The level of comforts, amenities, and services that are available to a society or location as a whole, as opposed to just one person, is referred to as the standard of living. The standard of living is significant because it is thought to affect a person's quality of life. The economy of the country is divided into different sections which produce different services. The value of the services is also different, which affects the money earned by the people of the country. As per the money earned by the people of the country, the country is divided into different classes based on earnings which create different standards of living in the country.
Apart from this, there was several economic and social dimension and disparities existing in the nation which gives more way to a different standard of living. All these together affect the standard of living of the people of the nation.
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james green just bought a stock which he expects will provide him with a quarterly cash payment, although that payment is not guaranteed. in fact, he expects the amount of the payment to vary over time. what type of payment is he expecting to receive?
James Green is expecting a payment in the form of a dividend.
Define Dividend.A dividend is the distribution of profits to shareholders by a corporation. When a corporation makes a profit or has a surplus, it has the option of paying a portion of that profit as a dividend to its shareholders. Any money that is left over is taken out and put back into the business.
A corporation distributes a percentage of its profits and retained earnings as a dividend to its shareholders. Retained earnings, which are accumulated when a corporation generates a profit, can either be reinvested in the business or paid out as a dividend to shareholders.
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in the income statement section of the worksheet, if the debit column (column 5) is smaller than the credit column (column 6), what does this indicate?
In the income statement section of the worksheet, if the debit column (column 5) is smaller than the credit column (column 6), this shows net loss.
Net income is calculated by subtracting entire expenses (Debit column total) from total revenue (Credit column total). At the bottom of the work sheet's Income Statement section, net income is written as a debit. Put the net income amount on the same line in the Balance Sheet Credit column. You have a net loss if your entire expenses (debit column total) exceed your total revenue (credit column total). At the bottom of the work sheet's Income Statement section, net loss is reported as a credit. Put the net loss amount on the same line in the balance Sheet debit column.
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