Dtermine the amount of net income for april assuming that

Question

Financial information related to Midas Interiors for March andApril 2008 is as follows:

                                                  March31,2008                 April 30, 2008

Accountspayable                           $ 30,800                              $  33,200             

Accountsreceivable                        68,000                                    78,250

Capitalstock                                     37,500                                    37,500

Retainedearnings                                ?                                             ?     

Cash                                             120,000                                  204,000

Supplies                                         6,000                                     5,000

1. Prepare balance sheets for Midas Interiors as of March 31and as of April 30, 2008
2. Determine the amount of net income for April, assuming that noadditional capital stock was issued and no dividends were paidduring the month
3. Determine the amount of net income for April, assuming that no additional capital stock was issued but dividends of $25,000 werepaid during the month.