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Calculating net income based on stockholder equity

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Given the following information, compute 2003 net income for McRae Company.

Stock holders' equity - January 1, 2003 $105,000
Stock holders' equity - December 31, 2003 140,000
Stock holders' investments during 2003 25,000
Dividens paid during 2003 38,000

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Solution Summary

The solution entails calculation of net income if stockholders equity and dividends paid are given.

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Calculation of net income for McRae Company for 2003
Stock holders' equity - December 31, 2003 140,000 ...

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