Calculate net income using the accounting equation


Response to the following problem:

Calculate net income (or loss) using the accounting equation

At the beginning of the current fiscal year, the balance sheet for Davis Co. showed liabilities of $640,000. During the year liabilities decreased by $36,000, assets increased by $130,000, and paid-in capital increased from $60,000 to $384,000. Dividends declared and paid during the year were $50,000. At the end of the year, stockholders' equity totaled $858,000.

Required: Calculate net income (or loss) for the year.

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Accounting Basics: Calculate net income using the accounting equation
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