Applying the Fundamental Accounting EquationOn January 1, Huffer Corporation had total assets of $230,500, total liabilities of $84,200, commonstock of $83,700, and retained earnings of $62,600. During the year, Huffer had net income of$42,750, declared and paid dividends of $11,900, and issued additional common stock for $13,100,Huffer's total assets on December 31 were $230,500.Required:Calculate the amount of liabilities that Huffer must have on December 31 in order for the balancesheet equation to balance.

Lets understand the basics.As per accounting equation, total assets are always equal to total equity…

Answered: Applying the Fundamental Accounting…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The income statement for Cullumber, Inc. is as follows: CULLUMBER, INC. Income Statement For the Year Ended December 31, 2021 Sales revenue $442,000 Cost of goods sold 264,000 Gross profit 178,000 Expenses (including $19,000 interest and $36,700 income taxes) 114.000 Net income $64,000 Additional information: 1 2 Common stock outstanding January 1, 2021 was 44,000 shares and 54,000 shares were outstanding at December 31, 2021. The market price of Cullumber, Inc., stock was $16 in 2021. 3. Cash dividends of $17,130 were paid, $1,770 of which were to preferred stockholders. Compute the following measures for 2021: (Round Earnings per share to 2 decimal places, eg. 52.75. Round other answers to 1 decimal place, e.g. 52.7.) (a) Earnings per share $ (b) Price-earnings ratio (c) Payout ratio (d) Times interest earned 1.31 12.2 times 26.7 % times
Ecker Company reports $1,400,000 of net income and declares $196,000 of cash dividends on its preferred stock for the year. At year- end, the company had 350,000 weighted-average shares of common stock. 1. What amount of net income is available to common stockholders? Net income To preferred stockholders Net income available to common stockholders 2. What is the company's basic earnings per share (EPS)? Basic Earnings per Share Choose Numerator: Choose Denominator: Basic Earnings per Share Basic earnings per share
[The following information applies to the questions displayed below.] Markus Company’s common stock sold for $5.25 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year’s financial statements: EndingBalance BeginningBalance Cash $ 49,000 $ 44,200 Accounts receivable $ 92,000 $ 68,700 Inventory $ 76,300 $ 92,000 Current assets $ 217,300 $ 204,900 Total assets $ 801,000 $ 875,400 Current liabilities $ 85,500 $ 90,000 Total liabilities $ 206,000 $ 185,400 Common stock, $1 par value $ 165,000 $ 165,000 Total stockholders’ equity $ 595,000 $ 690,000 Total liabilities and stockholders’ equity $ 801,000 $ 875,400 This Year Sales (all on account) $ 1,095,000 Cost of goods sold $ 635,100 Gross margin $ 459,900 Net operating income $ 313,875 Interest expense $ 15,500 Net income $ 208,862 2. What is the…
Subject: acounting
Markus Company’s common stock sold for $1.75 per share at the end of this year. The company paid a common stock dividend of $0.42 per share this year. It also provided the following data excerpts from this year’s financial statements: Ending Balance Beginning Balance Cash $ 27,000 $ 43,800 Accounts receivable $ 48,000 $ 41,300 Inventory $ 45,100 $ 48,000 Current assets $ 120,100 $ 133,100 Total assets $ 312,000 $ 263,800 Current liabilities $ 49,500 $ 34,500 Total liabilities $ 82,000 $ 73,800 Common stock, $1 par value $ 105,000 $ 105,000 Total stockholders’ equity $ 230,000 $ 190,000 Total liabilities and stockholders’ equity $ 312,000 $ 263,800 This Year Sales (all on account) $ 580,000 Cost of goods sold $ 336,400 Gross margin $ 243,600 Net operating income $ 49,500 Interest expense $ 3,000 Net income $ 32,550 6. What is the book value per share at the end of this year?
Shareholders' Equity Tinman Corporation reports the following balances at the end of the current year: Common Stock, $5 par, $50,000; Retained earnings, $110,000; Additional Paid-in Capital on Common Stock, $200,000; Income Taxes Payable, $9,800; and Accumulated Other Comprehensive Income, $26,000. Prepare the shareholders' equity section of Tinman's year-end balance sheet. Tinman Corporation Partial Balance Sheet December 31 Shareholders' Equity Contributed Capital: Total contributed capital Total Shareholders' Equity
Richards Corporation had net income of $231,470 and paid dividends to common stockholders of $45,400. It had 58,600 shares of common stock outstanding during the entire year. Richards Corporation's common stock is selling for $52 per share. The price-earnings ratio is a.16.00 times b.3.95 times c.1.00 times d.13.16 times
Markus Company’s common stock sold for $1.75 per share at the end of this year. The company paid a common stock dividend of $0.42 per share this year. It also provided the following data excerpts from this year’s financial statements: Ending Balance Beginning Balance Cash $ 27,000 $ 43,800 Accounts receivable $ 48,000 $ 41,300 Inventory $ 45,100 $ 48,000 Current assets $ 120,100 $ 133,100 Total assets $ 312,000 $ 263,800 Current liabilities $ 49,500 $ 34,500 Total liabilities $ 82,000 $ 73,800 Common stock, $1 par value $ 105,000 $ 105,000 Total stockholders’ equity $ 230,000 $ 190,000 Total liabilities and stockholders’ equity $ 312,000 $ 263,800 This Year Sales (all on account) $ 580,000 Cost of goods sold $ 336,400 Gross margin $ 243,600 Net operating income $ 49,500 Interest expense $ 3,000 Net income $ 32,550 3. What are the dividend payout ratio and the dividend yield ratio?
[The following information applies to the questions displayed below.] Markus Company’s common stock sold for $5.25 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year’s financial statements: EndingBalance BeginningBalance Cash $ 49,000 $ 44,200 Accounts receivable $ 92,000 $ 68,700 Inventory $ 76,300 $ 92,000 Current assets $ 217,300 $ 204,900 Total assets $ 801,000 $ 875,400 Current liabilities $ 85,500 $ 90,000 Total liabilities $ 206,000 $ 185,400 Common stock, $1 par value $ 165,000 $ 165,000 Total stockholders’ equity $ 595,000 $ 690,000 Total liabilities and stockholders’ equity $ 801,000 $ 875,400 This Year Sales (all on account) $ 1,095,000 Cost of goods sold $ 635,100 Gross margin $ 459,900 Net operating income $ 313,875 Interest expense $ 15,500 Net income $ 208,862 5. What is the return…
Helio Co. has retained earnings at the beginning of the current year of $400,000. During the current year net income of $70,000 was earned, and a cash dividend of $1.00 per share was declared and paid on the 50,000 shares of common stock outstanding. Prepare a statement of retained earnings as of the end of the current year.
On January 1, 2020, Cave Corporation had retained earnings of $7,900,000. During 2020, Cave reported net income of $1,380,000m declared dividends of $380,000 and issued common stock for $1,090,000. What were Cave's retained earnings balance on December 31, 2020?

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