Jerry's Butcher Shop Had the Following Assets and Liabilities at the Beginning

question 75

Essay

Jerry's Butcher Shop had the following assets and liabilities at the beginning and end of the current year:
$$\begin{array} { l l l } & \text { Assets } & \text { Liabilities } \\\text { Beginning of the year } & \$ 114,000 & \$ 68,000 \\\text { End of the year } & 135,000 & 73,000\end{array}$$
If there were no stockholder investments in the business but the company paid $5,000 in dividends during the year,what was the amount of net income earned by Jerry's Butcher Shop?

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Definitions:

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.

Unique Risk

Nonmarket or firm-specific risk factors that can be eliminated by diversification. Also called firm-specific risk, nonsystematic risk, or diversifiable risk.

Diversification

Diversification is an investment strategy that aims to reduce risk by allocating investments among various financial instruments, industries, geographic locations, or other categories.

Portfolio

A collection of investments, such as stocks, bonds, commodities, and real estate, held by an individual or an institution.