Net income and stockholders' equity for four businesses
Four different corporations, Juliet, Kilo, Lima, and Mike, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders' equity, are summarized as follows:
|
Total Assets
|
Total Liabilities
|
|
Beginning of the year
|
$ 600,000
|
$150,000
|
|
End of the year
|
1,125,000
|
500,000
|
On the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Hint: First determine the amount of increase or decrease in stockholders' equity during the year.)
Juliet: No additional capital stock was issued, and no dividends were paid.
Kilo: No additional capital stock was issued, but dividends of $55,000 were paid.
Lima: Additional capital stock of $100,000 was issued, but no dividends were paid.
Mike: Additional capital stock of $100,000 was issued, and dividends of $55,000 were paid.