Question

Kyzera manufactures, markets, and sells cellular telephones. The average total assets for Kyzera is \(250,000. In its most recent year, Kyzera reported net income of \)65,000 on revenues of $475,000.

Required 3. What are total expenses for Kyzera in its most recent year?

Short answer

The expenses are computed as $410,000.

Step-by-step solution

Definition of Expenses

Expenses are defined as the cost incurred by the business for running and generating some revenue for the period.

Computation of Expenses

$\begin{array}{rcl}\mathrm{Expenses}& =& \mathrm{Revenues}-\mathrm{Net}\mathrm{income}\\ & =& \$475,000-\$65,000\\ & =& \$410,000\end{array}$