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 348,000 $ Firm C $ 416,000 164,000 64,000 44,000 112,000 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 47,200 148,800 88,000 64,800 22,400 9,600 40,000 99,200

Answer 1

Firms						Calculation
		Firm A	Firm B	Firm C		Firm A	Firm B	Firm C
Total assets	31-Dec-19	192,800	348,000	416,000		=64,000+44,000+84,800
Total liabilities	31-Dec-19	64,000	152,000	164,000		(Liabs + Capital + RE)	=348,000-47,200-148,800
Paid in capital	31-Dec-19	44,000	47,200	112,000			(Assets - Liabs - RE)
Retained Earnings	31-Dec-19	84,800	148,800	140,000		=40,000+54,400-9,600		=416,000-164,000-112,000
Net Income	2019	54,400	88,000	64,800		(Op RE + Net Inc - Div)		(Assets - Liabs - Capital)
Dividends declared & paid	2019	9,600	38,400	22,400			=99,200+88,000-148,800
Retained Earnings	1-Jan-19	40,000	99,200	97,600			(Op RE + Net Inc - Clsg RE)	=140,000-64,800+22,400
								(Clsg RE - Net Inc + Div)