How do I determine the net income of this accounting problem?

It should be easy but Im dumb and have never been exposed to accounting till today. Plz help a high school freshman out.



Hoover Amadeus is the sole stockholder of Diplo, a computer manufacturing business. At the end of its accounting period, June 1, 2007, Diplo has assets of $950,000 and liabilities of $300,000. Using the accounting equation and considering each case independently, determine the following amounts:

The part I need help with



Net income (or net loss) during 2008, assuming that as of June 1, 2008, assets were $1,200,000, liabilities were $195,000, and there was no additional stock was issued nor dividends distributed.How do I determine the net income of this accounting problem?
You will use the formula:

Equity 2008

Less: Equity 2007

=Net Income 2008



This formula is valid only because there was no additional stock was issued nor dividends distributed.



The equity balance of 2007 and 2008 can be derived by subtracting Liabilities from Assets, such that, A - L = E.



Therefore, Equity 2007 is 650,000 (950,000-300,000) and Equity 2008 is 1,005,000 (1,200,000-195,000).



Net Income 2008 is 355,000 (1,005,000-650,000).