Balance Sheet Information of Digital Solutions, Inc $\begin{array}{lr}\text { Assets } & \$ 100,000 \\\text { Liabilities } & 34,000 \\\text { Shareholders' equity } & 66,000\end{array}$

question 62

Essay

Balance sheet information of Digital Solutions, Inc. at December 31, 2016, is provided below.
$\begin{array}{lr}\text { Assets } & \$ 100,000 \\\text { Liabilities } & 34,000 \\\text { Shareholders' equity } & 66,000\end{array}$

During 2017, the company entered into the following transactions:
1. Common stock was issued for $\$ 12,000$ cash.
2. Services were performed for $\$ 45,000$ cash.
3. Cash expenses of $\$ 31,000$ were incurred.
4. Long-term liabilities of $\$ 18,000$ were paid.
5. The market value of an available-for-sale investment owned at yearend exceeded its cost by $\$ 6,000$ .
6. Dividends of $\$ 9,000$ were declared and paid.

A. Which transactions are operating?
B. Compute net income for the year ending December 31, 2017.
C. Compute comprehensive income for the year ending December 31, 2017.

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Definitions:

Debt Percentage

Debt percentage typically refers to the proportion of a company's total capital that is financed through debt, indicating its leverage level.

Cash Flow Data

Information pertaining to the amounts of inflows and outflows of cash for a business or investment.

Leverage Ratio

Leverage Ratio is a financial metric that measures the amount of debt used by a company to finance its assets, often indicative of the risk level of the company's financial structure.

Tax Burden

The total amount of taxes that an individual or business owes to the government, expressed as a percentage of income or revenue.