Question

How do I get the total for Shareholder's Equity and net income for 2015 if I have the info below. Beginning Retained earning for 2016 was given as 5,173,286 which I know I could use as ending RE for 2015. However, I tried to calculate how they was able to get to that number and I could not come up with a number that would match that. Thank you.

1. accumulated other comprehensive income (loss): 621,236
2. accumulated depreciation, PPE: 1,829,634
3. additional paid in capital, common stock: 299,304
4. additional paid in capital, preferred stock: 75
5. common stock: 300,000
6. COGS: 3,000,235
7. Depreciation expense: 307,200
8. dividends common stock: 292,351
9. dividends preferred stock: 2,000
10. Interest Expense: 191,240
11. (loss) income from discontinued operations, net of tax: 28,100
12. preferred stock: 900
13. provision for income tax: 245,105
14. research and development expense: 199,500
15. restructuring charges: 199,506
16. retained earning, beginning: 2,960,256
17. sales: 8,430,061
18. selling general and admin expenses: 1,751,794
19. treasury stock, at cost: 4,472,969

Answer 1

Solution

Calculation of net income for 2015

Sales 84,30,061

Less:- Cost of Goods Sold 30,00,235

Interest expense 1,91,240

Selling, general & admin expense 17,51,794

Depreciation Expense    3,07,200

  (loss) income from discontinued operations 28,100 52,78,569

Net Profit 31,51,492

Less:- Dividents - Common Stock 2,92,351

Dividents - Preference Stock 2,000

Provision for Income Tax 2,45,105

Research & Development Expense 1,99,500

Restructuring charges 1,99,506 9,38,462   

Net Income transferred to Retained Earnings    22,13,030  

Calculation of Shareholders Equity

a) Common Stock 3,00,000

Additional Paid in Capital 2,99,304

Total Common Stock   5,99,304  

Retained Earnings beginning 29,60,256

Net income for the year 2015 22,13,030

Retained earnings at the end of the year 2015 51,73,286

b) Preferred Stock 900

Additional paid in capital   75

Total Preferred Stock     975