Question: The December 31, 2013, balance sheet for Thomas Company showed total stockholders' equity of $156,000. Total stockholders' equity increased by $65,000 between December 31, 2013, and December 31, 2014. During 2014 Thomas Company acquired $20,000 cash from the issue of common stock. Thomas Company paid a $5,000 cash dividend to the stockholders during 2014.
Required: Determine the amount of net income or loss Thomas reported on its 2014 income statement. (Hint: Remember that stock issues, net income, and dividends all change total stockholders' equity.)