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 Stretch-Tape Corporation reports net sales of $439,900 and net income of $54,780. Average total assets for the year are $830,000. Stockholders’ equity at the beginning of the year was $530,000, and $23,000 was paid to stockholders as dividends during the year. There were no other stockholders’ equity transactions that occurred during the year.Required:Calculate the return on assets, profit margin, asset turnover, and return on equity ratios. (Round your answers to 1 decimal place.) Profitability Ratios Return on assets 6.6 % Profit margin 12.5 % Asset turnover times Return on equity %
At the beginning of the current fiscal year, the balance sheet of Hughey Incorporated showed stockholders' equity of $519,000. During the year, liabilities increased by $23,000 to $224,000, paid-in capital increased by $38,000 to $176,000, and assets increased by $269,000. Dividends declared and paid during the year were $51,000. Required: Calculate net income or loss for the year. Note: Amounts to be deducted should be indicated with a minus sign. Beginning Changes Changes Ending Assets = 269,000 = Liabilities 23,000 + Stockholders' Equity RE PIC + 38,000 + $ 224,000+ $ 176,000 + $519,000 SE
WD Corporation reports the following year-end balance sheet data. The company's debt-to-equity ratio equals: Cash $ 42,000 Current liabilities $ 77,000 Accounts receivable 57,000 Long-term liabilities 28,000 Inventory 62,000 Common stock 102,000 Equipment 147,000 Retained earnings 101,000 Total assets $ 308,000 Total liabilities and equity $ 308,000
At the beginning of the current fiscal year, the balance sheet of Hughey Inc. showed stockholders' equity of $520,000. During the year. liabilities increased by $26,000 to $222,000; paid-in capital increased by $34,000 to $178,000; and assets increased by $252,000. Dividends declared and paid during the year were $62,000. Required: Calculate net income or loss for the year. (Amounts to be deducted should be Indicated with a minus sign.) Beginning Changes Ending Assets 252,000 = Liabilities + + 26,000+ Stockholders' Equity RE PIC + 34,000 + $ 222,000+ $ 178,000+ $520,000 SE
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock (4,000 shares) Retained earnings Common equity Total llabilities and equity Sales Operating costs excluding depreciation and amortization EBITDA Depreciation & amortization EBIT Interest EBT Taxes (25%) Net Income Dividends pald Income Statement for Year Ending December 31, 2021 2021 Balances, 12/31/20 2021 Net Income Cash Dividends Addition to retained earnings Balances, 12/31/21 $ 15,000 35,000 34,190 $ 84,190 48,000 $132,190 $ 10,100 7,300 6,200 $ 23,600 15,000 $ 38,600 60,000 33,590 $ 93,590 $132,190 c. Construct Arlington's 2021 statement of stockholders' equity. Shares $ 2020 $ 13,000 30,000 28,000…
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
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
The year-end financial statements of Calloway Company contained the following elements and corresponding amounts: Assets = $34,000; Liabilities = ?; Common Stock = $6,400; Revenue = $13,800; Dividends = $1,450; Beginning Retained Earnings = $4,450; Ending Retained Earnings = $8,400.The amount of liabilities reported on the end-of-period balance sheet was:
The year-end financial statements of Greenway Company contained the following elements and corresponding amounts: Assets = $23,000; Liabilities = ?; Common Stock = $5,300; Revenue = $11,600; Dividends = $900; Beginning Retained Earnings = $3,900; Ending Retained Earnings = $7,300. The amount of liabilities reported on the end-of-period balance sheet was A. $11,200. B. $10,400. C. $13,800. D. $9,200.
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
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $51,900; total assets, $169,400; common stock, $85,000; and retained earnings, $45,550.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 22,000 Accounts payable 8,800 Accrued wages payable 33,400 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets 2,850 152,300 Common stock Retained earnings $ 253,500 Total liabilities and equity For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income $ 450,600 298,050 152,550 98,900 4,500 49,150 19,800 $ 29,350 $ 15,500 4,000 3,700…

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