Chapter 8, Problem 8.6E

Exercise 8.6

Review exercise-calculate net income At the beginning of the current fiscal year, the balance sheet of Cummings Co. showed liabilities of $876,000. During the year, liabilities decreased by $144,000; assets increased by $308,000; and paid-in capital increased by $40,000 to $760,000. Dividends declared and paid during the year were $248,000. At the end of the year, stockholders’ equity totaled $1,516,000.

Required:

Calculate net income or loss for the year using the same format as shown in Exercise 8.5.