Review exercise-calculate net income. At the beginning of the current fiscal year, the balance sheet of Cummings Co. showed liabilities of $438,000. During the year,

Question

60 users unlocked this solution today!

Review exercise-calculate net income. At the beginning of the current fiscal year, the balance sheet of Cummings Co. showed liabilities of $438,000. During the year, liabilities decreased by $72,000; assets increased by $154,000; and paid-in capital increased by $20,000 to $380,000. Dividends declared and paid during the year were $124,000. At the end of the year, stockholders' equity totaled $758,000.

Required:

Calculate net income or loss for the year using the same format as shown in Exercise 8.5.