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Eagle Corp. operates Magnetic
Resonance Imaging (MRI) clinics throughout the Northeast. At the end of the
current period, the company reports the following amounts: Assets = $41,000;
Liabilities = $22,500; Dividends = $2,100; Revenues = $12,200; Expenses =
$8,100.
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|
Required:
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|
|
1.
|
Calculate net income.
|
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2.
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Calculate stockholders' equity at
the end of the period.
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Explanation:
1.
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Revenues
|
−
|
Expenses
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=
|
Net
Income
|
||||||
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$
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12,200
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|
−
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$
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8,100
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=
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$
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4,100
|
|
|
|
||||||||||
2.
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Assets
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=
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Liabilities
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+
|
Stockholders'
Equity |
||||||
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$
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41,000
|
|
=
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$
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22,500
|
|
+
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$
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X
|
|
|
$
|
41,000
|
|
−
|
$
|
22,500
|
|
=
|
$
|
18,500
|
|
|
|
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