At the beginning of the current fiscal year, the balance sheet for Davis Company showed liabilities of $224,000. During the year, liabilities decreased by $12,600, assets increased by $45,500, and paid-in capital increased from $21,000 to $134,400. Dividends declared and paid during the year were $17,500. At the end of the year, stockholders' equity totaled $300,300. Required: a. Calculate net income (or loss) for the year. Indicate the financial statement effect.