Question: Four different companies—Chang, Henry, Nagel, and
Four different companies—Chang, Henry, Nagel, and Wilcox—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 preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year.
Company Chang: No additional capital stock was issued, and no dividends were paid.
Company Henry: No additional capital stock was issued, but dividends of $90,000 were paid. Company Nagel: Capital stock of $125,000 was issued, but no dividends were paid.
Company Wilcox: Capital stock of $125,000 was issued, and dividends of $90,000 were paid.
Transcribed Image Text:
Total Assets Total Liabilities Beginning of the year End of the year $775,000 $400,000 900,000 300,000
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