Lily Company had the following assets and liabilities on the dates indicated.
|
December 31 |
Total Assets |
Total Liabilities |
|
2010 |
$400,000 |
$250,000 |
|
2011 |
$460,000 |
$300,000 |
|
2012 |
$590,000 |
$400,000 |
Lily began business on January 1, 2010, with an investment of $100,000 from stockholders.
Instructions
From an analysis of the change in stockholders’ equity during the year, compute the net income (or loss) for:
(a) 2010, assuming Lily paid $15,000 in dividends for the year.
(b) 2011, assuming stockholders made an additional investment of $50,000 and Lily paid no dividends in 2011.
(c) 2012, assuming stockholders made an additional investment of $15,000 and Lily paid dividends of $30,000 in 2012.