At the end of Year 1, Murray Company had the following accounting equation Assets Liabilities Stockholders' Equity Common Retained Cash + Land = Stock Earnings 7,000 + 8,000 = 4,000 + 3,000 14 8,000 During Year 2, Murray experienced the following events. 1. Paid $4,000 cash to purchase land. 2. Earned $18,695 of cash revenue. 3. Paid $10,938 of cash expenses. 4. Paid $8,680 cash dividends to its stockholders Based on this information the amount of net income appearing on the Year 2 financial statements is $