Question

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

Answer 1

Step-by-step explanation:

Net Income = Revenue -Expenses

= $11,600 -$7,800

= $3,800

Retained Earnings = $3,800- $1,800

= $2,000

According Accounting Equation ;

Total Assets = Total liabilities + Total equity

Stockholders' Equity = $38,000- $21,000

= $17,000