At the beginning of the current fiscal year, the balance sheet for Davis Co. showed liabilities of $160,000. During the year, liabilities decreased by $9,000, assets increased by $32,500, and paid-in capital increased from $15,000 to $96,000. Dividends declared and paid during the year were $12,500. At the end of the year, stockholders' equity totaled $214,500. Required: Calculate net income (or loss) for the year. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Stockholders' Equity PIC RE Assets Liabilities + $ 160,000 + $ 15,000 + Beginning: Changes: 32,500 = (9,000) + + Ending: + $ 96,000 + ($214,500 total SE) Statement of Stockholders' Equity (Partial) Retained earnings, beginning Retained earnings, ending