Net Income A summary of the operations of Streuling Company for the year ended May 31, 2009, is shown below.

Required:
1. Determine the net income for the year by preparing an income statement. (Assume that 3,000 shares of stock are outstanding.)
2. Interpretive Question: Assuming an operating loss for the year, is it a good idea for Streuling to still pay its shareholders dividends?

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Advertising expense Supplies expense Rent expense Salaries expense Miscellaneous expense Dividends ... Retained earnings (6/1/08) Income taxes Consulting fees (revenues) Administrative expense $ 2,760 37,820 1,500 18,150 4,170 12,400 156,540 21,180 115,100 7,250