Financial information related to Midas Interiors for March and April 2008 is as follows:

a. Prepare balance sheets for Midas Interiors as of March 31 and as of April 30, 2008.

b. Determine the amount of net income for April, assuming that no additional capital stock was issued and no dividends were paid during the month.

c. Determine the amount of net income for April, assuming that no additional capital stock was issued but dividends of $25,000 were paid during the month.

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Accounts payable Accounts receivable Capital stock Retained earnings Cash Supplies March 31, 2008 $ 30,800 April 30, 2008 $ 33,200 78,250 37,500 68,000 37,500 ? ? 120,000 204,000 6,000 5,000