Question

Hello, 

I have solved the rest of the equation but can not seem to figure out how to solve for net income. Could you possibly show me the equation to do it and explain? 

Thank you!

Required information

[The following information applies to the questions displayed below.]
 
The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow.
 

Stockholders’ Equity (January 1)
Common stock—$6 par value, 100,000 shares authorized, 30,000 shares issued and outstanding	$	180,000
Paid-in capital in excess of par value, common stock		140,000
Retained earnings		360,000
Total stockholders’ equity	$	680,000

 

Stockholders’ Equity (December 31)
Common stock—$6 par value, 100,000 shares authorized, 35,000 shares issued, 5,000 shares in treasury	$	210,000
Paid-in capital in excess of par value, common stock		160,000
Retained earnings ($50,000 restricted by treasury stock)		440,000
		810,000
Less cost of treasury stock		(50,000	)
Total stockholders’ equity	$	760,000

The following transactions and events affected its equity during the year.
 

Jan.		5		Declared a $0.50 per share cash dividend, date of record January 10.
Mar.		20		Purchased treasury stock for cash.
Apr.		5		Declared a $0.50 per share cash dividend, date of record April 10.
July		5		Declared a $0.50 per share cash dividend, date of record July 10.
July		31		Declared a 20% stock dividend when the stock’s market value was $10 per share.
Aug.		14		Issued the stock dividend that was declared on July 31.
Oct.		5		Declared a $0.50 per share cash dividend, date of record October 10.

Thank you for your help,

L