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Exercise 1-4 Calculate net income and stockholders equity (LO2) 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 = $38,000; Liabilities = $21,000; Dividends = $1,800; Revenues = $11,600; Expenses = $7,800. Required: 1. Calculate net income. Net income 2. Calculate stockholders' equity at the end of the period. Stockholders' equity

Respuesta :

Answer:

(a) $3,800

(b) $17,000

Explanation:

Given that,

Assets = $38,000;

Liabilities = $21,000;

Dividends = $1,800;

Revenues = $11,600;

Expenses = $7,800

Net income:

= Revenue - Expenses

= $11,600 - $7,800

= $3,800

stockholders' equity at the end of the period:

= Assets - Liability

= $38,000 - $21,000

= $17,000

Therefore, the net income is $3,800 and stockholder's equity is $17,000.

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