Three Different Companies--A, B, and C--Have the Same Balance Sheet

question 36

Essay

Three different companies--A, B, and C--have the same balance sheet at the beginning and the end of a year.These are summarized below: $$\begin{array} { l c c } & \text { Total Assets } & \text { Total Liabilities } \\\text { Beginning of the year } & \$ 500,000 & \$ 250,000 \\\text { End of the year } & \$ 1,200,000 & \$ 350,000\end{array}$$ Given the data above and the additional information for each company below, determine the net income (loss) for each company.
Company A......No additional investment was made by stockholders, and no dividends were paid.
Company B........Stockholders invested an additional $200,000, and no dividends were paid.
Company C ....... Stockholders invested $450,000, and dividends of $50,000 were paid.

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