World diabetes day company was incorporated on January 1, 2019 with proceedsfrom issuance of 7.5M in shares and borrowed funds of 1.1M. During the first year ofoperations, revenue from sales amounting to 820,000 and expenses totaled 640,000.On that year, dividends have been declared worth 30,000 but scheduled to be paidnext year (2020). The liabilities at the end of the year 2019 have increased to1,200,000.Assume other things held constant, how much is the total asset at the end of 2019?

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Assume other things held constant, how much is the total asset at the end of 2019?

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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A: The Answer

Question

World diabetes day company was incorporated on January 1, 2019 with proceeds
from issuance of 7.5M in shares and borrowed funds of 1.1M. During the first year of
operations, revenue from sales amounting to 820,000 and expenses totaled 640,000.
On that year, dividends have been declared worth 30,000 but scheduled to be paid
next year (2020). The liabilities at the end of the year 2019 have increased to
1,200,000.
Assume other things held constant, how much is the total asset at the end of 2019?

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