At the beginning of the year, Azuza's Parking Lots had the following balance sheet:

a. At the end of the year, Azuza had the following assets and liabilities: Cash, \(\$ 7,800\); Accounts Receivable, \(\$ 17,400 ;\) Land, \(\$ 67,000\); and Accounts Payable, \(\$ 5,500\); and Common Stock, \(\$ 27,000\). Prepare a year-end balance sheet for Azuza's Parking Lots.

b. Assume that stockholders did not invest any money in the business during the year but received \(\$ 8,000\) as a dividend; what was Azuza's net income or net loss the year?

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Assets Liabilities Cash... $4,800 Accounts payable... $12,000 Accounts receivable 14,700 Land... 67,000 Stockholders' Equity Common stock.... 27,000 Retained earnings 47,500 Total Liabilities and Total Assets $86,500 Stockholders' Equity.. $86,500