Step-by-Step Guidance for Financial Accounting Worksheet: Net Income and Cash Flow Computations

Edson Company had assets of $250,000 on January 1 and $230,000 on December 31. Liabilities were $150,000 on January 1 and $99,000 on December 31. Common stock at December 31 was $90,000, and retained earnings at December 31 were $41,000. If Edson issued $10,000 of common stock and declared $13,000 in dividends during the year, what was Edson's net income for the year? Use the accounting equation: $\text{Assets} = \text{Liabilities} + \text{Stockholders' Equity}$ and the retained earnings formula: $\text{Ending Retained Earnings} = \text{Beginning Retained Earnings} + \text{Net Income} - \text{Dividends}$

Based on Johnston Enterprises' financial statements, what was the amount of dividends paid during 2020? Use the retained earnings formula: $\text{Ending Retained Earnings} = \text{Beginning Retained Earnings} + \text{Net Income} - \text{Dividends}$

What is the net cash provided by operating activities for Johnston Enterprises for 2020, using the indirect method? Start with net income and adjust for non-cash expenses and changes in working capital: $\text{Net Cash from Operating Activities} = \text{Net Income} + \text{Depreciation Expense} + \text{Loss on Sale of Equipment} + \text{Decrease in Accounts Receivable} - \text{Increase in Inventory} + \text{Increase in Accounts Payable} + \text{Increase in Income Taxes Payable}$