Calculate Net Income in each separate scenario:
Total Assets Total Liabilities
Beg. of year $ $
End of year $ $
Co A No additional capital stock was issued, and no dividends were paid
Co B No additional capital stock was issued, but dividends of $ were paid out.
Co C Capital stock of $ was issued, but no dividends were paid.
Co D Capital stock of $ was issued, and dividends of $ were paid.
Assets Liabilities Equity
$
Increase in equity is: $
The increase in equity can be attributable to two things:
a Increase in stock
b Increase in Retained Earnings RE which is attributable to Net Income NI minus Dividends
