Changes in the balance sheet account balances for the Bubble Bobble Co. during 2011 follow. Dividends declared during 2011 were $15,000. Calculate the net income for the year assuming that no transactions other than the dividends affected retained earnings.
Increase
(Decrease)
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,500
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32,500)
Buildings and Equipment (net) . . . . . . . . . . . . . . . . . . . . . . . . . . 160,000
Patents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,000)
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (45,000)
Bonds Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,000
Capital Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
Additional Paid-In Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000