During 2016, Banigo Corporation experienced an increase in total assets of $72,600 and an increase in total liabilities of $40,900. Assuming that capital stock increased by $5,000 and no dividends were paid, calculate Banigo's net income or net loss for 2016.

Question

Business

Maggie

9 January, 13:25

During 2016, Banigo Corporation experienced an increase in total assets of $72,600 and an increase in total liabilities of $40,900. Assuming that capital stock increased by $5,000 and no dividends were paid, calculate Banigo's net income or net loss for 2016.

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Answers (1)

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William · Answer 1

The net income = $26,700

Explanation:

Data provided as per the question

Increase in Assets = $72,600

Increase in Liabilities = $40,900

Common stock issued = $5,000

The computation of net income or net loss for 2016 is shown below:-

= Increase in Assets - Increase in Liabilities - Common stock issued + Dividend

= $72,600 - $40,900 - $5,000 + $0

= $26,700

Therefore the net income = $26,700