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.) Assets = = 32,500 = Stockholders' Equity PIC + RE 15,000 + Liabilities + $ 160,000 + (9,000) + Beginning: Changes: $ Ending: L $ 96,000 + ($214,500 total SE) Statement of Stockholders' Equity (Partial) Retained earnings, beginning Retained earnings, ending