Question

The equity sections from the 2014 and 2015 balance sheets of The Saucy Bread Company Inc. appeared as follows:
The Saucy Bread Company Inc.
Equity Section of the Balance Sheet
December 31, 2014
Contributed capital:
Common shares, unlimited shares authorized,
175,000 shares issued................................................................................... $5,250,000
Retained earnings............................................................................................. 1,176,432
Total equity ...................................................................................................... $6,426,432

The Saucy Bread Company Inc.
Equity Section of the Balance Sheet
December 31, 2015
Contributed capital:
Common shares, unlimited shares authorized,
192,500 shares issued ............................................................................... $5,796,000
Retained earnings............................................................................................. 1,320,300
Total equity ...................................................................................................... $7,116,300

On February 11, May 24, August 13, and December 12, 2015, the board of directors declared $0.30 per share cash dividends on the outstanding shares. 7,500 common shares were issued on August 1, 2015, and another 10,000 were issued on November 2, 2015.

Required
Under the assumption that there were no transactions affecting retained earnings other than the ones given, determine the 2015 net income of the company. Show your calculations.



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  • CreatedJanuary 08, 2015
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