Answer:
a. Net Income =$29,336
b. Net Income = $29,936
c. Net Loss = - $15,664
d. Net Income = $5,064
Explanation:
Assets = Liabilities + Equity
Equity = Asset - Liability
Beginning Equity :
Beg Equity = $95,500 - $40941
Beg Equity = $54,559
Ending Equity:
Ending Equity = $141,000 - $57,105
Ending equity = $83,895
Net Income = Ending equity - Beg equity + Dividends paid - investments made
a. When no investments made and no dividends paid:
Net Income = $83,895 - $54,559 + 0 - 0
Net Income =$29,336
b. When no investments made and $600 dividend paid:
Net Income = $83,895 - $54,559 + $600 - 0
Net Income = $29,936
c. When no dividend paid and $45,000 invested in common stock:
Net Income = $83,895 - $54,559 + 0 - $45,000
Net Income = - $15,664
d. When $35,000 investments made and $600 dividend paid:
Net Income = $83,895 - $54,559 + $600 - $35,000
Net Income = $5,064
