Beemer Corporation has provided the following information pertaining to the year ended December 31,2011:
Stockholders' equity as of January 1 was $789,000.
Dividends declared during the year totaled $71,000 of which $60,000 were paid during the year.
Stockholders invested $113,000 cash into the business in exchange for new shares of stock.
Stockholders' equity as of December 31 was $1,030,000.
How much was Beemer's 2011 net income?
A)$210,000
B)$199,000
C)$312,000
D)$323,000

Question

Beemer Corporation has provided the following information pertaining to the year ended December 31,2011:
 Stockholders' equity as of January 1 was $789,000.
Dividends declared during the year totaled $71,000 of which $60,000 were paid during the year.
Stockholders invested $113,000 cash into the business in exchange for new shares of stock.
Stockholders' equity as of December 31 was $1,030,000.
How much was Beemer's 2011 net income?
A)$210,000
B)$199,000
C)$312,000
D)$323,000

Quizplus · Accepted Answer

Beginning stockholders' equity ($789,000) + net income - dividends declared ($71,000) + stockholder investments ($113,000) = Ending Stockholders equity ($1,030,000).2011 net income = $199,000

Beemer Corporation Has Provided the Following Information Pertaining to the Year