At the beginning of the current fiscal year, the balance sheet of Cummings Company showed liabilities of $431,000. During the year, liabilities decreased by $74,000, assets increased by $152,000, and paid-in capital increased by $17,000 to $370,000. Dividends declared and paid during the year were $123,000. At the end of the year, stockholders' equity totaled $752,000.**Required:**Calculate net income or loss for the year.*Note: Amounts to be deducted should be indicated with a minus sign.*### Table:| | **Assets** | = | **Liabilities** | + | **Stockholders' Equity** | | ||------------------------|------------|----|-----------------|---|--------------------------|---|---|| | | | | | **PIC** | + | **RE** || **Beginning** | $957,000 | = | $431,000 | + | $17,000 | | || **Changes** | 152,000 | = | (74,000) | + | 17,000 | | || **Ending** | | = | $74,000 | + | $370,000 | | $752,000 SE |- **Assets** increased by $152,000 over the year.- **Liabilities** decreased by $74,000.- **Paid-in Capital (PIC)** increased by $17,000.- **Ending Stockholders' Equity** = $752,000.**Explanation for Calculating Net Income or Loss:**1. Sum of changes in liabilities and stockholders' equity (PIC and RE) accounts for changes in assets.2. Use the provided numbers to identify net income or loss over the year, incorporating dividends paid.

Net income contributes to the retained earnings account, which is a key component of the owner's equity on the balance sheet. Net income is calculated by subtracting total expenses from total revenues. While net income is a measure of profitability, it is not directly tied to the assets, liabilities, and balance sheet. Instead, these elements are used to calculate net incomeFormula snip:Stockholder’s equityAssets=Liabilities+PIC+REBeginning: $ 9,56,800 = $ 4,31,000 + $ 3,53,000 + $ 1,72,800Changes: $ 1,52,200 = $ -74,000 + $ 17,000 + $ 3,32,200Net IncomeChanges: = + + $ -1,23,000Ending: $ 11,09,000 = $ 3,57,000 + $ 3,70,000 + $ 3,82,000 $ 7,52,000 SENet income is $332,200