Eagle Corp. operates Magnetic Resonance Imaging (MRI) clinics throughout the Northeast. At theend of the current period, the company reports the following amounts: Assets = $50,000; Liabilities = $27,000; Dividends = $3,000; Revenues = $14,000; Expenses = $9,000. Required:1. Calculate net income. 2. Calculate stockholders' equity at the end of the period.

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Business

Gustavo Andrade

27 September, 19:34

Eagle Corp. operates Magnetic Resonance Imaging (MRI) clinics throughout the Northeast. At theend of the current period, the company reports the following amounts: Assets = $50,000; Liabilities = $27,000; Dividends = $3,000; Revenues = $14,000; Expenses = $9,000. Required:1. Calculate net income. 2. Calculate stockholders' equity at the end of the period.

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Anderson Johnson · Answer 1

Net Income = $5,000

Stakeholder's Equity = $23,000

Explanation:

Net Income

Revenue $14,000

-Expenses $9,000

=Net income $5,000

Assets = $50,000

Liabilities = $27,000

Accounting Equation:

Assets = Stockholder's equity + Liabilities

$50,000 = Stockholder's equity + $27,000

Stockholder's equity = $50,000 - $27,000

Stockholder's equity = $23,000

Net income of Eagle Corp. is $5,000 and Stockholder's equity is $23,000.