Presented below are changes in the account balances of Ping Company

| September 5, 2016

Question
Presented below are changes in the account balances of Ping Company during the year, except for retained earnings.

Increase Increase

(Decrease) (Decrease)

———————— ————————

Cash $25,000 Accounts payable $35,000

Accounts receivable (net) (13,000) Bonds payable (20,000)

Inventory 54,000 Common stock 75,000

Plant Assets (net) 57,000 Paid-in capital 16,000

The only entries in Retained Earnings were for net income and a dividend declaration of $15,000.

Compute the net income for the current year using the Capital Maintenance method of income computation.

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