(Learning Objectives 3, 4: Using the accounting equation; evaluating business operations) Winkler, Inc.’s comparative balance sheet at January 31, 20X7, and 20X6, reports

(in millions):

❙ Requirements Three situations about Winkler’s issuance of shares and payment of dividends during the year ended January 31, 20X7, follow. For each situation, use the accounting equation and the statement of changes in equity to compute the amount of Winkler’s net income or net loss during the year ended January 31, 20X7.

1 Winkler issued €15 million of shares and paid no dividends.

2 Winkler issued no shares but paid dividends of €11 million.

3 Winkler issued €90 million of shares and paid dividends of €35 million.