Chapter 1, Problem 1.15EX

To determine

Net income: The net income refers to the excess of revenues over expenses, in a business after making all the adjustments. The net income can be expressed as follows:

$\text{Net Income = Revenues - Expenses}$

Stockholder’s equity: Stockholder’s equity refers to the right the owner posses over the resources of the business. Revenues and the expenses are the components of the Stockholder’s equity.

$\text{Stockholder's Equity = }\left\{\left(\begin{array}{l}\text{Common }\\ \text{Stock}\end{array}\right)\text{+}\left(\text{Dividends}\right)\text{+}\left(\begin{array}{l}\left(\text{Revenues}\right)\text{–}\\ \left(\text{Expenses}\right)\end{array}\right)\right\}$

To determine: the net income for the given companies.