E4-1B (Computation of Net Income) Presented below are changes in all the account balances of Chris Park Furniture Co.

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 Cap   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.