Maxwell Flooring started the year with total assets of $160,000 and total liabilities of $75,000. During the year, the business recorded $250,000 in revenues, $100,000 in expenses, and dividends of $30,000. The net income reported by Maxwell Flooring for the year was A : $150,000. B : $85,000. C : $125,000. D : $90,000.

Answer: (A) $150,000 Step-by-step explanation: As per the given data of the question, Maxwell Flooring started the year with Total Assets = $160,000 Total liabilities = $75,000 Revenues = $250,000 Expenses = $100,000 Dividends = $30,000 Stockholders' equity at the end of the year was given by formula: SE = (Total Assets - Total Liabilities) + (Revenues - Expenses) - Dividends Therefore, SE = (Total Assets - Total Liabilities) + (Revenues - Expenses) - Dividends SE = ($160,000 - $75,000) + ($250,000 - $100,000) - $30,000 SE = $205000 Now,Stockholders' equity at the end of the year =  Net income - Dividend + Assets - Liabilities$205000  = Net income - $30,000 + $160,000- $75,000∴ Net income = $205,000 - $55000 = $150,000Hence,The net income reported by Maxwell Flooring for the year = $150,000