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.
They successfully gathered $83,550; here's how I arrived at that amount. Since $15,000 represents 100% of the goal and they amassed 557%, I calculated $15,000 multiplied by 5, which equals $75,000, plus 57% of $15,000 which amounts to $8,550. Therefore, adding $75,000 and $8,550 gives a total of $83,550.
