Select balance sheet data for Bach, Inc. is presented below: Mar 31, 20XX Apr 30, 20XX Assets $116,000 $192,000 Liabilities 47,000 53,000 Common Stock 14,000 14,000 Bach did not pay any dividends during this period. What is the net income for April?

The net income for the month of April is $70,000

Explanation:

By using the Accounting equation, we will determine the ending and beginning retained earnings is as:

The accounting equation is

Assets = Liabilities + Shareholder's equity

Assets = Liabilities + (Common Stock + Retained Earnings [RE] )

$116,000 = $47,000 +($14,000 + RE)

RE = $116,000 - $47,000 - $14,000

Beginning RE = $55,000

Computing ending RE as:

Ending RE = Assets - Liabilities - Common Stock

= $192,000 - $53,000 - $14,000

= $125,000

Now computing the Net Income as:

Beginning RE + Net Income (NI) = Ending Inventory

$55,000 + NI = $125,000

NI = $125,000 - $55,000

NI = 70,000

i guess you could put raise the economic balance