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The total assets and the total liabilities of a business at the beginning and at the end of the year appear below. During the year, $50,000 of dividends were paid and $35,000 cash received in exchange for common stock. Assets for beginning of year : $295,000Assets at end of year: $355,000
Liabilities for beginning of year: $190,000
Liabilities at end of year: $220,000
Problem 1: The amount of net income for the year was
Option 1: $45,000 Option 2: $40,000 Option 3: $85,000 Option 4: $135,000
Financial Statement Analysis and Preparation
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