Question

Question 12 1 pts Acme Inc. has Assets of $ 103,489 and Liabilities of $71,669. What is the Equity Ratio? Enter the value rounding to 2 decimals. The formulas for the accounting equation and equity ratio are simple and something that students should know from memory, therefore they not given Question 13 1 pts On June 1 Acme Inc. has retained Earnings of $34,066. Revenues for June were $5,609. Expenses for June were $3,055 in June the company paid out a total of $959 in dividends to its shareholders. What is the value of Retained Earnings on June 302 Question 14 1 pts Acme Inc. has Liabilities of $52,464 and Stockholders' Equity of $84,392. What is the value of Assets Enter the value in whole numbers with no decimals. The formula for the accounting equation is simple and something that students should know from memory, therefore it is not given.

Answer 1

12). Assets = Liabilities + Stockholders' Equities

Stockholders' Equities = Assets - Liabilities = $103,489 - $71,669 = $31,820

Equity Ratio = Stockholders' Equities / Assets

= $31,820 / $103,489 = 0.3075, or 30.75%

13). Net Income = Revenues - Expenses = $5,609 - $3,055 = $2,554

Addition to retained earnings = Net Income - Dividends paid = $2,554 - $959 = $1,595

Ending Retained Earnings Balance = Opening Retained Earnings Balance + Addition to retained earnings

= $34,066 + $1,595 = $35,661

14). Assets = Liabilities + Stockholders' Equities

= $52,464 + $84,392 = $136,856