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The information presented here represents selected data from the December 31, 2019, balance sheets and income statements for the year then ended for three firms
The information presented here represents selected data from the December 31, 2019, balance sheets and income statements for the year then ended for three firms. Required: Calculate the missing amounts for each firm. Firm A 56,000 38,500 Total assets, 12/31/19 Total liabilities, 12/31/19 Paid in capital, 12/31/19 Rolained earnings, 12/31/19 Net income for 2019 Dividends declared and paid during 2019 Ratamod earnings 1/1/19 Firm B Firm $ 304,500 $ 364,000 143,500 41,300 98,000 130 200 77.000 56,700 19,600 86 300 47.000 8.400 35.000
Expert Solution
Firm A:
Retained earnings, 12/31/19 = Retained earnings, 1/1/19 + Net income for 2019 - Dividends declared and paid during 2019
Retained earnings, 12/31/19 = $35,000 + $47,600 - $8,400
Retained earnings, 12/31/19 = $74,200
Total assets, 12/31/19 = Total liabilities, 12/31/19 + Paid-in capital, 12/31/19 + Retained earnings, 12/31/19
Total assets, 12/31/19 = $56,000 + $38,500 + $74,200
Total assets, 12/31/19 = $168,700
Firm B:
Retained earnings, 12/31/19 = Retained earnings, 1/1/19 + Net income for 2019 - Dividends declared and paid during 2019
$130,200 = $86,800 + $77,000 - Dividends declared and paid during 2019
Dividends declared and paid during 2019 = $33,600
Total assets, 12/31/19 = Total liabilities, 12/31/19 + Paid-in capital, 12/31/19 + Retained earnings, 12/31/19
$304,500 = Total liabilities, 12/31/19 + $41,300 + $130,200
Total liabilities, 12/31/19 = $133,000
Firm C:
Total assets, 12/31/19 = Total liabilities, 12/31/19 + Paid-in capital, 12/31/19 + Retained earnings, 12/31/19
$364,000 = $143,500 + $98,000 + Retained earnings, 12/31/19
Retained earnings, 12/31/19 = $122,500
Retained earnings, 12/31/19 = Retained earnings, 1/1/19 + Net income for 2019 - Dividends declared and paid during 2019
$122,500 = Retained earnings, 1/1/19 + $56,700 - $19,600
Retained earnings, 1/1/19 = $85,400
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