1 A company began the year with Assets of $200,000, Liabilities of $40,000 and Stockholders' equity...

A company began the year with Assets of $200,000, Liabilities of $40,000 and Stockholders' equity of $160,000. During the year Assets increased $110,000 and stockholders' equity increased $50,000. What was the change in Liabilities for the year?

Answer__________________

At the end of last year, the company's assets totaled $1,720,000 and its liabilities totaled $1,480,000. During the current year, the company's total assets increased by $120,000 and its total liabilities increased by $48,000. At the end of the current year, stockholders' equity was

Answer__________________

3	A company began the year with assets of $200,000 and liabilities of $150,000. During the year assets increased by $120,000 and liabilities decreased by $20,000.

What is the amount of stockholder’s equity at the beginning of the year?

__________________

What was the amount of change in stockholders’ equity during the year?

_______________

4 The ending retained earnings balance of Max's Italian Restaurant chain increased by $9.5 million from the beginning of the year. The company had declared a dividend of $2.5 million during the year. What was the net income earned during the year?

Net income________________

Solutions

Expert Solution

Note: Increases are shown as positive amounts and decreases are shown with a negative sign.

	Assets	=	Liabilities	+	Equity
Beg. Bal.	200000	=	40000	+	160000
During the year	110000	=	60000	+	50000

Answer: $60000 Increase

	Assets	=	Liabilities	+	Equity
End of last year	1720000	=	1480000	+	240000
During current year	120000	=	48000	+	72000
End of current year	1840000	=	1528000	+	312000

Answer: $312000

	Assets	=	Liabilities	+	Equity
Beg. Bal.	200000	=	150000	+	50000
During current year	120000	=	-20000	+	140000
End of current year	320000	=	130000	+	190000

a. Answer: $50000

b. Answer: $140000 Increase

4. Assuming the beginning retained earnings to be 'X'

Ending retained earnings = X + $9.5

Beginning retained earnings + Net income - Dividends = Ending retained earnings

X + Net income - 2.5 = X + 9.5

Net income = X + 9.5 - X + 2.5

Net income = 12

ekkarill92 answered 1 year ago

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