Reference no: EM132607958

Presented below are changes in all the account balances of Skysong Furniture Co. during the current year, except for retained earnings.

                                          Increase (Decrease)                                                    Increase(Decrease)

Cash                                    $ 70,710                   Accounts Payable             $(51,900)

Accounts Receivable (net)         45,300                    Bonds Payable                      82,560

Inventory                               131,400                      Common Stock                      134,800

Investments                           (48,390) Paid-In Capital in Excess of Par-Common Stock    14,220

Question 1: Compute the net income for the current year, assuming that there were no entries in the Retained Earnings account except for net income and a dividend declaration of $25,290 which was paid in the current year.