Archer Co. had the following assets and liabilities at the beginning and end of the current year: AssetsLiabilitiesBeginning of the year$114,000$68,000End of the year135,00073,000If $12,000 of common stock was issued during the year, and the business paid $5,000 in dividends during the year, what was the amount of net income earned by Archer Co.?
What will be an ideal response?
Beginning equity = $114,000 - $68,000 = $46,000
Ending equity = $135,000 - $73,000 = $62,000
Increase in equity = $62,000 - $46,000 = $16,000
Net income = $16,000 - $12,000 + $5,000 = $9,000
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