A company named Better Baseball Bats Inc (BBB) started its business on 1/1/06. On that day, the company issued common stock for $100,000. Over the next three years, its total liability at the end of each year was the same amount, $35,000. The following is some additional information about BBB over the next three years.
? In its first year of operations, BBB made no other stock issues except the one on 1/1/06. During that year, BBB had $25,000 of Sales Revenues, $15,000 of expenses, and did not pay any dividends.
? In its second year, BBB did not issue any new stock. Sales Revenues were $50,000, and expenses were $25,000. No dividends were paid during the year.
? In its third year, BBB issued no new stock, but paid $5,000 in dividends. The balance of shareholders' equity at the end of the third year is $160,000.
Answer the following questions:
? For years 1, 2, and 3, calculate total assets, total shareholders' equity, and total retained earnings at the end of each year.
? For year 3, calculate the company's net income for the year.