Answer:
Net Income / Net Loss:
Scenario A $35,888 (-58,000 + 22,112)
Scenario B $37,088 (-58,000 + 22,112 + 1,500)
Scenario C -$9,112 (-58,000 + 45,000 + 22,112)
Scenario D $17,112 (-58,000 + 35,000 + 22,112 + 18,000)
Explanation:
a) Data and Calculations:
Beginning Ending
Assets $57,000 $24,463
Liabilities 115,000 46,575
Equity (58,000) ($22,112)
Net Income / Net Loss:
Scenario A $35,888 (-58,000 + 22,112)
Scenario B $37,088 (-58,000 + 22,112 + 1,500)
Scenario C -$9,112 (-58,000 + 45,000 + 22,112)
Scenario D $17,112 (-58,000 + 35,000 + 22,112 + 18,000)
b) The net income is the difference between the beginning equity plus new investments and the ending equity and dividends.
