San Mateo Healthcare had an equity balance of $1.38 million at the beginning of the year. At the end of the year, its equity balance was $1.98 million.

a. Assume that San Mateo is a not-for-profit organization. What was its net income for the period?

b. Now, assume that San Mateo is an investor-owned business.

• Assuming zero dividends, what was San Mateo’s net income?

• Assuming $200,000 in dividends, what was its net income?

• Assuming $200,000 in dividends and $300,000 in additional stock sales, what was San Mateo’s net income?