Josephine's Bakery Had the Following Assets and Liabilities at the Beginning

question 160

Essay

Josephine's Bakery had the following assets and liabilities at the beginning and end of the current year:
$\begin{array}{|l|r|r|}\hline & \text { Assets } & \text { Liabilities } \\\hline \text { Beginning of the year } & \$ 114,000 & \$ 68,000 \\\hline \text { End of the year } & 135,000 & 73,000 \\\hline\end{array}$ If the owners invested an additional $12,000 in the business during the year, but no dividends were paid, what was the amount of net income earned by Josephine's Bakery during the current year?

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Definitions:

Unilateral Contract

A contract in which one party makes a promise in exchange for the other party's performance, becoming binding when the performance is completed.

Shovel Sidewalk

The act of clearing snow and ice from pedestrian paths, often a municipal requirement for property owners during the winter months.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the second party has reasonably relied on that promise to their detriment.

Wal-Mart

A multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.