[Shelley88]

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?

[pready]

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.