Question

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 Firm B $ 391,500 Firm C $ 468,000 184,500 126,000 72,000 49,500 Total assets, 12/31/19 Total liabilities, 12/31/19 Paid-in capital, 12/31/19 Retained earnings, 12/31/19 Net Income for 2019 Dividends declared and paid during 2019 Retained earnings, 1/1/19 53,100 167,400 99,000 61,200 10,800 45,000 72,900 25,200 111,600

Answer 1

Firm B Firm C Calculation Firm A =72,000+49,500+95,400 (Liabs + Capital + RE) Firms Firm A Total assets 31-Dec-19 216,900 Total liabilities 31-Dec-19 72,000 Paid in capital 31-Dec-19 49,500 Retained Earnings 31-Dec-19 95,400 Net Income 2019 61,200 Dividends declared & paid 2019 10,800 Retained Earnings 1-Jan-19 45,000 Firm B 391,500 171,000 53,100 167,400 99,000 43,200 111,600 Firm C 468,000 184,500 126,000 157,500 72,900 25,200 109,800 -45,000+61,200-10,800 (Op RE + Net Inc - Div) =391,500-53,100-167,400 (Assets - Liabs -RE) =468,000-184,500-126,000 (Assets - Liabs - Capital) =111,600+99,000-167,400 (Op RE + Net Inc - Clsg RE) =157,500-72,900+25,200 (Clsg RE - Net Inc + Div)