Question Two:

A. Presented below are changes (in thousands) in the account balances of Sha Company during the year, except for retained earnings.

Increase Increase (Decrease) (Decrease)

Cash $25,000 Accounts payable $34,000

Accounts receivable (net) (13,000) Bonds payable (20,000)

Inventory 52,000 Share capital 72,000

Plant assets (net) 37,000 Share premium 16,000

The only entries in Retained Earnings were for net income and a dividend declaration of $10,000.

Required:

Compute the net income for the current year.