Toth Company had the following assets and liabilities on the

Toth Company had the following assets and liabilities on the dates indicated. 2014 2015 2016 $495,075 $575,075 $705,075 $228,902 $278,902 $378,902 Toth began business on January 1, 2014, with an investment of $95,875 from stockholders. From an analysis of the change in stockholders\' equity during the year, compute the net income (or loss) for: (a) 2014, assuming Toth paid $17,615 in dividends for the year. Net income (loss) for 2014 (b) 2015, assuming stockholders made an additional investment of $47,942 and Toth paid no dividends in 2015. Net income (loss) for 2015 (c) 2016, assuming stockholders made an additional investment of $24,801 and Toth paid dividends of $27,097 in 2016. Net income (loss) for 2016 187913

Solution

a Net income(loss) for 2014 = 495075-228902-95875+17615= 187913 b Net income(loss) for 2015 = 575075-278902-(495075-228902)-47942= -17942 c Net income(loss) for 2015 = 705075-378902-(575075-278902)-24801+27097= 32296