Question

The information presented here represents selected data from the December 31, 2016, balance sheets and inco statements for the year then ended for three firms. Required: Calculate the missing amounts for each firm. Firm A Total assets, 12/31/16 Total liabilities, 12/31/16 Paid-in capital, 12/31/16 Retained earnings, 12/31/16 Net income for 2016 Dividends declared and paid during 2016 Retained earnings, 1/1/16 96,000 66,000 156,000 81,600 14,400 60,000 Firm B Firm C $ 522,000 $ 624,000 246,000 70,800 168,000 223,200 132,000 97,200 33,600 148,800

Answer 1

Answer Firm As Firm Bs Fim c$ Todae assets, 12/31/16 $289,200 522,000 624,000 Todal liabilities, 12/31/16 96,000 $228,000246,000 Paid-in capital, 12/31/16 66,000 70,800 168,000 Redained eamings, 12/31116 $127,2.00 223,200 $210,000 Net Income for 2016 81,600 132,000 97,200 2016 Dividends declared and paid during 14,400 $ 57,600 33,600 Retained earnings, 1/1/16 60,000 148,800 $146,400

Note Redained comings, 12/31/16 CFIRMA) = opening Retained eamings tibet Income Dividend declared = bo, oco +81, boo 14,400 = $127,200 Totul assets, 12/31/16 C Firm A) Retained eamings end t paidin capital endt Total liabilities end = 127,200 +66,000 +96,000 = $289,200 Total liabilities, 12131116 Cfirm B - Total Assets- pardin capital end - closing retained eamings = 522,000_70,800 ~ 223,200 - $ 228,000 Retained eamings 12/31/16 Cfirm c). = Total Assets-closing paidin capital Todal liabilities = 624,000-168,000 -246,000 - $ 210,000

Retained earnings Ililib = closing Redained (Film c) camings + Dividend - Netlncome 210.000 + 33,600 97,200 = $146,400 = Dividend declared ( (Fium B) = opening Retained comings tNet Income closing retained Camings = 148,800 + 132,000 - 223,200 - $57,600