How do you get the net income of 23,290?

How do you get the net income of 23,290?

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Student Name:
Instructor
Class:
McGraw-Hill/Irwin
Problem 02-04A
NETTLE DISTRIBUTION
Balance Sheet
December 31, 2012
Assets
Liabilities
Cash
$64,300
Accounts payable
$3,500
Accounts receivable
26,240
Office supplies
3,160
Trucks
148,000
Equity
Office equipment
44,000
Total equity
282,200
Total assets
$285,700
Total liabilities and equity
$285,700
Correct!
Correct!
NETTLE DISTRIBUTION
Balance Sheet
December 31, 2013
Assets
Liabilities
Cash
$15,640
Accounts payable
$33,500
Accounts receivable
19,390
Note payable
40,000
Office supplies
1,960
Total liabilities
$73,500
Trucks
157,000
Office equipment
44,000
Building
80,000
Owner’s Equity
Land
60,000
Total equity
304,490
Total Assets
$377,990
Total liabilities and equity
$377,990
Correct!
Correct!
NETTLE DISTRIBUTION
Computation of 2013 Net Income
Equity, December 31, 2012
$282,200
Equity, December 31, 2013
(304,490)
Increase in equity in 2013
$22,290
Correct!
Owner investment
35,000
Add net income
23,290
«- Correct!
Deduct dividends
(36,000)
Increase in equity during 2013
$22,290
Correct!
NETTLE DISTRIBUTION
Debt Ratio Calculation
Debt Ratio
19.4%
Correct!

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