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The statement of stockholders' equity shows a $12,000 increase in the common stock account, a $30,000 increase in the paid-in capital in excess of par- common stock account, and a $120,000 increase in retained earnings. If the common stock has a par value of $4 and dividends of $15,000 were declared and paid during the year, what is the amount of net income for the year?

The statement of stockholders' equity shows a $12,000 increase in the common stock account, a $30,000 increase in the paid-in capital in excess of par- common stock account, and a $120,000 increase in retained earnings. If the common stock has a par value of $4 and dividends of $15,000 were declared and paid during the year, what is the amount of net income for the year?

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 10BE
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The statement of stockholders' equity shows a $12,000 increase in the common stock account, a $30,000 increase in the paid-in capital in excess of par- common stock account, and a $120,000 increase in retained earnings. If the common stock has a par value of $4 and dividends of $15,000 were declared and paid during the year, what is the amount of net income for the year?
Transcribed Image Text:The statement of stockholders' equity shows a $12,000 increase in the common stock account, a $30,000 increase in the paid-in capital in excess of par- common stock account, and a $120,000 increase in retained earnings. If the common stock has a par value of $4 and dividends of $15,000 were declared and paid during the year, what is the amount of net income for the year?
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