Blue Fin started the current year with assets of $709,000, liabilities of $354,500 and common stock of $209,000. During the curr

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Blue Fin started the current year with assets of $709,000, liabilities of $354,500 and common stock of $209,000. During the curr

ent year, assets increased by $409,000, liabilities decreased by $54,500 and common stock increased by $284,000. There was no payment of dividends to owners during the year. Use the information above to answer the following question. What was the amount of Blue Fin's net income for the year?

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Free_Kalibri [3.7K] · Answer 1 · 2026-04-01T13:08:48+03:00

The net income for the year amounts to $179,500. Based on the information provided, we begin with assets of $709,000, liabilities of $354,500, and common stock totaling $209,000. To compute retained earnings at the beginning, the equation Assets = Liabilities + Stockholder's Equity gives: $709,000 = $354,500 + $209,000 + Retained Earnings. Solving yields retained earnings of $145,500. For the current year, total assets increase to $1,118,000, with a decrease in liabilities to $300,000 and an increase in common stock to $493,000. Thus, ending retained earnings are calculated as $1,118,000 - $300,000 - $493,000 = $325,000. The increase in retained earnings indicates that the net income for this year is $179,500.