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

question 56

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 and dividends of $5,000 were paid during the year,what was the amount of net income earned by Josephine's Bakery during the current year?

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Definitions:

Cautious Decisions

Decisions made with careful consideration of potential risks and consequences to minimize the likelihood of adverse outcomes.

Group Polarization

Group polarization describes the phenomenon where a group's prevailing attitudes or beliefs become more extreme after group discussions or interactions.

Bystander Effect

This refers to the social psychology concept where the presence of bystanders reduces the probability of someone stepping forward to aid a person in need.

Groupthink

A phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.