Problem:
Blasco printing has net income of $26,310 for the year. At the beginning of the year, the firm had common stock of $35,000, paid in surplus of $11,200 and retained earnings of $48,420. At the end of the year, the firm had total equity of $142,430. The firm does not pay dividends.
Required:
Question: What is the amount of the net new equity raised during the year?
Note: Provide support for your underlying principle.