The Kimm Company had the following assets and liabilities on the dates indicated.

Kimm began business on January 1, 2005, with an investment of $100,000.
Instructions From an analysis of the change in stockholders' equity during the year, compute the net income (or loss) for:

(a) 2005, assuming Kimm paid $15,000 in dividends for the year.

(b) 2006, assuming stockholders made an additional investment of $50,000 and Kimm paid no dividends in 2006.

(c) 2007, assuming stockholders made an additional investment of $15,000 and Kimm paid dividends of $30,000 in 2007.

Transcribed Image Text:

December 31 Total Assets Total Liabilities 2005 $380,000 $250,000 2006 $460,000 $310,000 2007 $590,000 $400,000