The following data pertain to Liverpool Auto, Ltd. Total assets at January 1, 20X1, were £110,000; at December 31, 20X1, they were £126,000. During 20X1, sales were £360,000, cash dividends declared were £5,000, and operating expenses (exclusive of cost of goods sold) were £210,000. Total liabilities at December 31, 20X1, were £55,000; at January 1, 20X1, they were £50,000. There was no additional investment by stockholders during 20X1.
Compute the following:
1. Stockholders’ equity, January 1, 20X1, and December 31, 20X1
2. Net income for 20X1—ignore taxes
3. Cost of goods sold for 20X1