Answer:
$8,000
Explanation:
<u>Changes during the year :</u>
Liabilities = $16,000 Increase ($31,000 - $15,000)
Assets = $21,000 Increase
<u>Accounting Equation states that :</u>
Assets = Equity + Liabilities
<u>Change in equity during the year will be :</u>
Equity = Assets - Liabilities
= $5,000
<u>Causes of change in equity :</u>
Capital $5,000
Add Dividends ($2,000)
Add Change $5,000
Profit during the year $8,000
therefore,
Net Income for the year was $8,000