As of the beginning of 2013 a company had total contributed capital of $390,000
ID: 2427309 • Letter: A
Question
As of the beginning of 2013 a company had total contributed capital of $390,000 and total retained earnings of $44,000. Total liabilities were $190,000. During the year 2013, the company had the following transactions:
What is the amount of contributed capital that will be reported on the Statement of stockholders' equity at the end of 2013?
$459,000
$536,000
$390,000
$451,000
Which is the amount of retained earnings that will be reported on the Statement of stockholders' equity at the end of 2013?
$94,500
$74,500
$93,000
$44,000
The debt-to-assets ratio at the beginning of 2013 was closest to:
0.30
0.35
0.49
0.24
As of the beginning of 2013 a company had total contributed capital of $390,000 and total retained earnings of $44,000. Total liabilities were $190,000. During the year 2013, the company had the following transactions:
Explanation / Answer
The amount of contributed capital to be reported is 390,000 + 69,000 = $ 459,000
The amount of retained earnings to be reported = 44,000 + (169,000 -94,500-24,000) = $ 94,500
The debt-to-assets ratio at the beginning of 2013 was closest to 190,000 / ( 190,000+390,000+44,000) = 0.30
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