E1-30B. (Learning Objectives 2, 3: Using the accounting equation; evaluating business operations) Sprinkler, Inc.'s comparative Balance Sheet at January 31, 20X7 and 20X6, reports (in millions): 20X7 20X6 20 Total assets Total liabilities 39 12 3 Requirements Three independent scenarios about Sprinkler's issuance of shares and payment of dividends during the year ended January 31, 20X7, follow. For each situation, use the accounting equation and the statement of changes in equity to compute the amount of Sprinkler's net income or net loss during the year ended January 31, 20x7. 1. Sprinkler issued 10 million of shares and paid no dividends. 2. Sprinkler issued no shares but paid dividends of 10 million. 3. Sprinkler issued 6 million of shares and paid dividends of C2 million