Determining Retained Earnings and Net Income

The following information appears in the records of Jones Corporation at year-end:

Accounts receivable	$136,000	Retained earnings	$ ?
Accounts payable	64,600	Supplies	91,800
Cash	57,800	Equipment, net	367,200
Common stock	408,000

a. Calculate the balance in retained earnings at year-end. $Answer

b. If the amount of the retained earnings at the beginning of the year was $60,000, and $25,000 in dividends is paid during the year, calculate net income (net loss) for the year.