Following Are the Total Assets and Liabilities at the Beginning

question 71

Essay

Following are the total assets and liabilities at the beginning and end of the year for Maren Corporation:
$$\begin{array} { | l | r | r | } \hline & \text { Assets } & \text { Liabilities } \\\hline \text { Bepinging of the year } & \$ 70,000 & \$ 45,000 \\\hline \text { End of the year } & 130,000 & 40,000 \\\hline\end{array}$$ Determine the net income or loss for the year in each of the following situations:
a. The stockholders made no investments in the business and no dividends were paid during the year.
b. The stockholders made an investment of $20,000 and a dividend of $12,000 was paid during the year.

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Definitions:

Engineering

The application of scientific, mathematical, and empirical principles to design, develop, and improve structures, machines, and processes.

Scientific Relationships

The interactions or associations between variables or phenomena as understood through scientific research and experimentation.

Creative Destruction

The replacement of old products and production methods by innovative new ones that consumers judge to be superior. The process generates economic growth and higher living standards.

New Products

Goods or services that have been recently developed or introduced to the market.