E4-1B (Computation of Net Income)

E4-1B (Computation of Net Income) Presented below are changes in all the account balances of Chris
Park Furniture Co. during the current year, except for retained earnings.
Increase Increase
(Decrease) (Decrease)
Cash $ 252,800 Accounts Payable $(163,200)
Accounts Receivable (net) 144,000 Bonds Payable 262,400
Inventory 406,400 Common Stock 400,000
Investments (150,400) Additional Paid-in Capital 41,600
Instructions
Compute the net income for the current year, assuming that there were no entries in the Retained
Earnings account except for net income and a dividend declaration of $60,800 which was paid in the
current year.