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Question - Microtel began operations at the beginning of 20x6 with a $10,000 cash investment by stockholders. During 20x6, Microtel had revenue on account of $5,000; of this amount $2,000 was collected during 20x6 and $3,000 was an outstanding receivable at year-end. Microtel incurred $3,000 of operating expenses during 20x6; of this amount $1,000 was unpaid at year-end. During 20x6, $1,000 cash was disbursed as dividends. The only transaction during 20x6 was the purchase of $5,000 of equipment for cash near the end of the year. How much was Microtel's 20x6 net income?
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