Question: Assume that as of January 1, 2007, Milliken Consulting has total assets of $562,500 and total liabilities of $350,000. As of December 31, 2007, Milliken has total liabilities of $375,000 and total stockholders' equity of $281,250.
(a) What was Milliken's stockholders' equity as of December 31, 2006?
(b) Assume that Milliken did not pay any dividends during 2007. What was the amount of net income for 2007?