Exercise 2-14 (Algo) Calculate net income (or loss) using the accounting equation LO 2,3 At the beginning of the current fiscal year, the balance sheet for Davis Co. showed liabilities of $416,000. During the year, liabilities decreased by $23,400, assets increased by $84,500, and paid-in capital increased from $39,000 to $249,600. Dividends declared and paid during the year were $32,500. At the end of the year, stockholders' equity totaled $557,700. 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.) Assets Beginning Changes: 84,500 Ending: Liabilities Stockholders' Equity + PIC $ 416,000+ $39,000 RE (23,400) + $ 249,600+ ($557,700 total SE)