Exhibit 2-1 $\begin{array}{lll}
\text { Total Liabilities } & \text { Total Assets } & \
\$ 60,000 & \$ 100,000 & \text { Beginning of the year } \
\$ 325,000 & \$ 500,000 & \text { End of the year }
\end{array}$

Refer to Exhibit 2-1. What is net income, assuming no stock was issued and dividends of $25,000 were paid?
A) $110,000
B) $150,000
C) $160,000
D) $200,000

Question

Exhibit 2-1 $\begin{array}{lll}
\text { Total Liabilities } & \text { Total Assets } & \
\$ 60,000 & \$ 100,000 & \text { Beginning of the year } \
\$ 325,000 & \$ 500,000 & \text { End of the year }
\end{array}$

Refer to Exhibit 2-1. What is net income, assuming no stock was issued and dividends of $25,000 were paid?
A) $110,000
B) $150,000
C) $160,000
D) $200,000

Quizplus · Accepted Answer

Net income = Ending total assets - Beginning total assets - Dividends paid= $500,000 - $100,000 - $25,000= $160,000

Exhibit 2-1 Refer to Exhibit 2-1