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11 October, 02:01

Beginning stockholders' equity was $120,000. Ending stockholders' equity was $195,000. Additional issuances of capital stock during the year amounted to $18,000. Dividends during the year amounted to $12,000. How much was net income for the year?

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  1. 11 October, 02:28
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    The net income for the year is $ 69,000.

    Explanation:

    This question requires us to find net income for the year. The equity in balance sheet comprises of common stock, reserves and retain earning etc. So net income will be determine in the following way

    Opening equity + addition in equity + net income = closing equity + dividend

    120,000 + 18,000 + net income = 195,000 + 12,000

    Net income = $ 69,000
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