Assume that as of Jan.1,2009, Sorrento Consulting has total assets of $600,000 and total liabilities of $180,000. As of Dec. 31,2009, Sorrento has a total liabilities of $220,000 and total stockholders equity of $500,000.
A.) What was Sorrentos stockholders' equity as of Dec. 31,2008?


B.) Assume that Sorrento did not pay any dividends during 2009. What was the amount of net income for 2009?

For number A simply subtract total Liabilities of Jan 1, 2009 from total assets of Jan 1, 2009. This is your begininng year stockholders equity and ending year 2008 stockholders equity.

For question B simply subtract beginning year 2009 stockholders equity from your ending year 2009 stockholders equity.