Calculation of Net Income
Changes in the balance sheet account balances for the Beecher Sales Co. during 2008 follow. Dividends declared during 2008 were $20,000. Calculate the net income for the year assuming that no transactions other than the dividends affected retained earnings.
|
Increase |
|
|
(Decrease) |
|
|
Cash |
$ 65,200 |
|
Accounts Receivable |
82,000 |
|
Inventory |
(25,000) |
|
Buildings and Equipment (net) |
170,000 |
|
Patents |
(5,000) |
|
Accounts Payable |
(85,000) |
|
Bonds Payable |
120,000 |
|
Capital Stock |
50,000 |
|
Additional Paid In Capital |
50,000 |