Question

29 The Role of Accounting in Business Chapter 1 Obj. 4 V Best Buy, $4,995 The total assets and total liabilities for a recent year of Best Buy (BBY) and Gamestop (GME) are shown below, E1-3 Accounting equation Gamestop (in millions) Best Buy (in millions) $4,246 $15.256 10.261 Assets 2,179 Liabilities Determine the stockholders' equity of each company. Obj. 4 E1-4 Accounting equation The total assets and total liabilities for a recent year of Apple (AAPL) and HP (HPQ) formerly Hewlett-Packard are shown here. V Apple, $119,355 Apple (in millions) НP (in millions) $103,206 Assets $290,479 171,124 76,475 Uabilities Determine the stockholders' equity of each company. E1-5 Accounting equation Obj. 4 Determine the missing amount for each of the following: Va. $475.000 Liabilities + Stockholders' Equity Assets $ 175,000 a. $300,000 $525,000 b. $880.000 C. $2,100,000- S600,000 E1-6 Accounting equation Obj. 4 Determine the missing amounts (in millions) for the condensed balance sheets shown below. va. S10.617 Costco (COST) Target Wal-Mart (WMT) (TGT) Assets Liabilities Stockholders equity $33.440 $41,404 22.823 (a) (ы) 13,997 122,312 81,394 E1-7 Net income and dividends Obj. 4 The income statement of a corporation for the month of November indicates a net income of $90.000. During the same period, $100,000 in cash dividends were paid, Would it be correct to say that the business incurred a net loss of $10,000 during the month? Discuss

Answer 1

El-3 Accounting equation: Total Liabilities + Stockholder's equity Total Assets Stockholder's equity = Total Assets - Total Liabilities Best Buy (in millions) Stockholder's equity = $15,256 - $10,261 $4,995 Gamestop (in millions) Stockholder's equity = $4,246 - $2,179 $2,067 El-4 Apple (in millions) Stockholder's equity = $290,479 - $171,124 s119,355 HP (in millions) Stockholder's equity = $103,206 - $76,475 $26,731 El-5 Accounting equation: Total Liabilities + Stockholder's equity Total Assets $175,000 + $300,000 a) Total Assets %D $475,000 Total Assets - Stockholder's equity $880,000 - $525,000 $355,000 b) Total Liabilities = c) Stockholder's equity = Total Assets - Total Liabilities $2,100,000 - $600,000 $1,500,000 Costco (in millions) El-6 Stockholder's equity = Total Assets - Total Liabilities $33,440 - $22,823 $10,617 Target (in millions) Total Assets - Stockholder's equity Total Liabilities = $41,404 - $13,997 $27,407 Wal-Mart (in millions) Total Assets $122,312 + S81,394 S203,706 El-6 No, it would be incorrect to say that the business incurred a net loss of $10,000. The cash dividends were paid over the net income for the period is a decrease in the amount of retained earnings in the business.