Changes in the balance sheet account balances for the Beecher Sales Co. during 2008 follow. Dividends declared during 2008 were $20,000. Calculate the net income for the year assuming that no transactions other than the dividends affected retained earnings.
Increase
(Decrease)
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 65,200
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . 82,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25,000)
Buildings and Equipment (net) . . . . . . . . . . . . . . . . . . 170,000
Patents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,000)
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . (85,000)
Bonds Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000
Capital Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000
Additional Paid-In Capital . . . . . . . . . . . . . . . . . . . . . 50,000