Assume that as of January 1, 2013, Sylvester Consulting has total assets of $500,000 and total liabilities of $150,000. As of December 31, 2013, Sylvester has total liabilities of $200,000 and total stockholders’ equity of $400,000.
(a) What was Sylvester’s stockholders’ equity as of December 31, 2012?
(b) Assume that Sylvester did not pay any dividends during 2013. What was the amount of net income for 2013?