Question

In: Accounting

Al Shea is the sole owner and operator of SawTooth Company. As of the end of...

Al Shea is the sole owner and operator of SawTooth Company. As of the end of its accounting period, December 31, 20013, SawTooth Company has assets of $925,000 and liabilities of $285,000. During 20014, Al Shea invested an additional $50,000 and paid dividends of $30,000 from the business. What is the amount of net income during 2008, assuming that as of December 31, 20014, assets were $980,000, and liabilities were $255,000? a. $ 95,000 b. $ 65,000 c. $165,000 d. $725,000 I am confused here, because dividends should be subtracted from the retained earnings statement and investments should be on a cash flow statement. Please explain how to solve this. Explain why dividends are added and investments are less.

Solutions

Expert Solution


Related Solutions

Al Shea is the sole owner and operator of SawTooth Company. As of the end of...
Al Shea is the sole owner and operator of SawTooth Company. As of the end of its accounting period, December 31, 20013, SawTooth Company has assets of $925,000 and liabilities of $285,000. During 20014, Al Shea invested an additional $50,000 and paid dividends of $30,000 from the business. What is the amount of net income during 2008, assuming that as of December 31, 20014, assets were $980,000, and liabilities were $255,000? a. $ 95,000 b. $ 65,000 c. $165,000 d....
Any Rasmussen is the owner and operator of G044, a motivational consulting business. At the end...
Any Rasmussen is the owner and operator of G044, a motivational consulting business. At the end of its accounting period, December 31, 2018, G044 has assets of 633,790 and liabilities of 200,280. Using the accounts he equation and considering each case independently, determine the following amounts. a. Annie Rasmussen, capital, as of December 31, 2018_________ b. Annie Rasmussen, capital, as of December 31, 2019, assuming that as it is increased by 100,140 and liabilities increased by 60,210 during 2019 _______...
Todd Olson is the owner and operator of Alpha, a motivational consulting business. At the end...
Todd Olson is the owner and operator of Alpha, a motivational consulting business. At the end of its accounting period, December 31, 2013, Alpha has assets of $777,270 and liabilities of $245,620. Using the accounting equation and considering each case independently, determine the following amounts. a. Todd Olson, capital, as of December 31, 2013. $ b. Todd Olson, capital, as of December 31, 2014, assuming that assets increased by $122,810 and liabilities increased by $73,840 during 2014. $ c. Todd...
Larry Hoover is the owner and operator of Hoover’ s Merchandizing Company and the company has...
Larry Hoover is the owner and operator of Hoover’ s Merchandizing Company and the company has presented the following unadjusted trial balance at the end of their financial year ending December 31, 2016. Hoover’s Merchandizing Company Trial Balance as at December 31, 2016 A/C Name DR $ CR $ Cash      1,500,000 Accounts Receivable      4,580,000 Interest Receivable Merchandise Inventory      5,400,054 Prepaid Insurance      1,200,000 Furniture and Equipment      6,000,000 Accumulated Depreciation –Furniture/Equipment     1,770,000 Accounts Payable     1,450,000...
Mike Right is the owner and operator of Right’ s Merchandizing Company and the company has...
Mike Right is the owner and operator of Right’ s Merchandizing Company and the company has presented the following unadjusted trial balance at the end of their financial year ending December 31, 2016. Right’s Merchandizing Company Trial Balance as at December 31, 2016 A/C Name DR $ CR $ Cash      1,500,000 Accounts Receivable      4,580,000 Interest Receivable Merchandise Inventory      5,400,054 Prepaid Insurance      1,200,000 Furniture and Equipment      6,000,000 Accumulated Depreciation –Furniture/Equipment     1,770,000 Accounts Payable     1,450,000...
1. Suppose the company White Cabs is the sole authorised operator of taxicabs in Fairville, a...
1. Suppose the company White Cabs is the sole authorised operator of taxicabs in Fairville, a city of about two million people. a) With the aid of a revenue-cost diagram, explain and illustrate the company's decisions with regard to output (how much service it provides) and price. What kind of market structure are you assuming here? Would you expect White Cabs to make super-normal (or above-normal, or economic) profit? Briefly explain the latter concept. NOTE: Please explain the answer in...
Max Flyer is the founder and sole owner of the Go for broke Company. The company...
Max Flyer is the founder and sole owner of the Go for broke Company. The company develops oil wells in unproven territories. His company has purchased a tract of land that larger oil companies have spurned as unpromising even though it is near some large oil fields. Max has provided you the following information: • Drilling for oil on the tract would cost $100,000 (his investment). If the drilling is successful, and the well produces oil, his revenue would be...
Argosy Gaming Argosy Gaming Company is the owner and operator of six riverboat gambling casinos and...
Argosy Gaming Argosy Gaming Company is the owner and operator of six riverboat gambling casinos and hotels in the United States. Argosy has developed a centralized enterprise data warehouse to capture the data generated at each property. As part of this effort, Argosy selected an extract-transform-load (ETL) tool to gather and integrate the data from six different operational databases to create its data warehouse. The plan is to use the data to help Argosy management make quicker, well-informed decisions based...
George Carpenter is the sole stockholder and operator of XYZ, Inc. a consulting firm. At the...
George Carpenter is the sole stockholder and operator of XYZ, Inc. a consulting firm. At the end of its accounting period, December 31, 2015, XYZ, Inc. has assets of $400,000 and liabilities of $145,000. Using the accounting equation and considering each case independently, determine the following amounts: a) Stockholder’s equity on 12/31/2015. b) The amount and direction (increase or decrease) change in stockholder’s equity if, during 2016, assets increased by $45,000 and liabilities decreased by $10,000. c) Net income (or...
Fritz evans is the owner and operator of Be The One , a motivational consulting business.
Fritz evans is the owner and operator of Be The One , a motivational consulting business. At the end of its accounting period, December 31,2018,Be The One has assets of $3,95,000 and liabilities of $97,000.using the accounting equation,determine the following amounts (a) owner's equity as of December 31,2018(b) owner's equity as of December 31,2019,assuming the assets decreased by $65,000 and liabilties increased by $36,000 during 2019
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT