Net Income from Total Assets and Liabilities?
Lily Company had the following assets and liabilities on the dates indicated.
December 31 Total Assets Total Liabilities
2007 $403,000 $250,000
2008 $480,000 $302,000
2009 $620,000 $403,000
Lily began business on January 1, 2007, with an investment of $106,000.
Instructions
From an analysis of the change in stockholder's equity during the year, compute the net income (or loss) for the following situations. (If a net loss, record amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
(a) 2007, assuming Lily paid $21,000 in dividends for the year.
(b) 2008, assuming stockholders made and an additional investment of $50,000 and Lily paid no dividends in 2008.
(c) 2009, assuming stockholders made an additional investment of $16,000 and Lily paid dividends of $34,000 in 2009.
