Determine the amount of net income for april

Question

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

                                                  March31,2008                 April 30, 2008

Accountspayable                           $ 30,800                              $  33,200             

Accountsreceivable                        68,000                                 78,250

Capitalstock                                  37,500                                 37,500

Retainedearnings                              ?                                             ?     

Cash                                           120,000                                 204,000

Supplies                                        6,000                                    5,000

1. Prepare balance sheets for Midas Interiors as of March 31and as of April 30, 2008
2. Determine the amount of net income for April, assuming that noadditional capital stock was issued and no dividends were paidduring the month
3. Determine the amount of net income for April, assuming that noadditional capital stock was issued but dividends of $25,000 werepaid during the month.