The balance sheet for Pitchfork Company at December 31, 20X1 indicated that total assets were $100,000 and total liabilities were $36,500. At December 31, 20X2 total assets had increased to $180,000 and total liabilities were $73,500. During 20X2, Sparky issued $25,000 in new common stock and paid an $18,000 dividend. There were no other changes in equity other than Net Income for 20X2. Given this information, determine Net Income for the year ended December 31, 20X2 (ignore taxes):

Which of the following statements is correct? a. two firms with identical sales and operating costs but with different amounts of debt and tax rates will have different operating incomes by definition. b. free cash flow (fcf) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. c. retained earnings as reported on the balance sheet represent cash and, therefore, are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers. d. if a firm is reporting its income in accordance with generally accepted accounting principles, then its net income as reported on the income statement should be equal to its free cash flow. e. after-tax operating income is calculated as ebit(1 - t) + depreciation.

At the end of year 2, retained earnings for the baker company was $3,550. revenue earned by the company in year 2 was $3,800, expenses paid during the period were $2,000, and dividends paid during the period were $1,400. based on this information alone, retained earnings at the beginning of year 2 was:

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