The information presented here represents selected data from the December 31, 20
ID: 2484833 • Letter: T
Question
The information presented here represents selected data from the December 31, 2013, balance sheets and income statements for the year then ended for three firms.
Calculate the missing amounts for each firm.
The information presented here represents selected data from the December 31, 2013, 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 Firm C Total Assets 12/31/13 ? $435,000 $520,000 Total Liabilities, 12/31/13 80,000 190,000 205,000 Paid-In Capital 55,000 59,000 140,000 retained earnings, 12/31/13 106,000 186,000 ? net income for 2013 68,000 110,000 81,000 Dividends declared and paid during 2013 12,000 48,000 28,000 Retained earnings, 1/1/13 50,000 124,000 ?Explanation / Answer
Firm A :Total Asset = Total liabilities +Total equity
= 80000 + [55000+ 106000]
= $ 241000
Firm C =TA = TL +equiy
= 520000 = 205000+ equity
equity = 520000-205000= 315000
Shareholders equity = paid in capital +rRE
Retaine earning at 12/31/13 = 315000 - 140000 = 175000
RE at 1/1/13 = RE ate end +dividend - net income
= 175000+ 28000- 81000
= 122000
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