net income and stockholders equity for four businesses 539334

Net income and stockholders’ equity for four businesses

Four different corporations, Juliet, Kilo, Lima, and Mike, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders’ equity, are summarized as follows:

On the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Hint: First determine the amount of increase or decrease in stockholders’ equity during the year.)

Juliet: No additional capital stock was issued, and no dividends were paid.

Kilo: No additional capital stock was issued, but dividends of $55,000 were paid.

Lima: Additional capital stock of $100,000 was issued, but no dividends were paid.

Mike: Additional capital stock of $100,000 was issued, and dividends of $55,000 were paid.