Builtrite had sales of $700,000 and cogs of $280,000. in addition, operating expenses were calculated at 25% of sales. builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. a long-term capital gain of $55,000 was realized during the year along with a capital loss of $70,000

This is the presentation of the income statement of Builtrite in order to compute the net income:

Sales                                                                                   $700,000

Less: COGS                                                                        $280,000

Gross Profit                                                                         $420,000

Less: Operating expenses ($700,000 x 25%)    $175,000

          Dividends expense                                   $25,000

          Capital loss                                               $70,000    $270,000

Total                                                                                     $150,000

Add: Dividend income                                         $40,000

          Capital gain                                               $55,000    $95,000

Net income                                                                           $245,000

explanation:

a gas is not used in hydraulic machines as the fluid because gas is easily compressible and so if a gas is used, the energy would mostly go into compressing a gas. therefore a liquid is used in hydraulic machines as the fluid.

answer casual models;