did its cash balance decrease 500 000 during the year because of its loss 626322

After you revise your net income answer (see the example question in this section), the president tells you that he has since talked with other directors of the business and realized that he was wrong about the cash dividends. Now he’s fairly certain that $250,000 cash dividends were paid to shareowners during 2007 and that the business issued additional capital stock shares for $50,000. Based on this additional information, what amount of net income did the business earn in 2007?

A business reports $500,000 net loss for the year just ended. It didn’t issue or retire any capital stock shares during the year, and it didn’t pay cash dividends because of its loss in the year. Did its net worth decrease $500,000 during the year? Did its cash balance decrease $500,000 during the year because of its loss?