Calculate net income (or loss) using the accounting equation At the beginning of the current fiscal year, the balance sheet for Davis Co. showed liabilities of $320,000. During the year liabilities decreased by $18,000, assets increased by $65,000, and paid- in capital increased from $30,000 to $192,000. Dividends declared and paid during the year were $25,000. At the end of the year, owners' equity totaled $429,000. Required: Calculate net income (or loss) for the year.