Net Income and Stockholders' Equity for Four BusinessesFour different corporations, Cancer, Libra, Sagittarius, and Virgo, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount ofstockholders' equity, are summarized as follows:Total Assets Total LiabilitiesBeginning of the year$94,400$151,000$37,800$63,400End of the yearOn the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year.(Hint: First, determine the amount of increase or decrease in stockholders' equity during the year.)Cancer:No additional common stock was issued, and no dividends were paid.Libra:No additional common stock was issued, but dividends of $6,500 were paid.Additional common stock of $22,100 was issued, but no dividends were paid.Additional common stock of $19,500 was issued, and dividends of $7,400 were paid.Enter all amounts as positive numbers.Sagittarius:Virgo:CancerLibraSagittariusVirgo

The accounting equation states that assets are equal to the sum of the liabilities and equity.…

Answered: Net Income and Stockholders' Equity for…

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 following selected data were taken from the financial statements of the Winter Group for the three most recent years of operations: Dec. 31, Year 3 Dec. 31, Year 2 Dec. 31, Year 1 Total assets $3,000,000 $2,700,000 $2,400,000 Notes payable (10% interest) 1,000,000 1,000,000 1,000,000 Common stock 400,000 400,000 400,000 Preferred $6 stock, $100 par 200,000 200,000 200,000 Retained earnings 1,126,000 896,000 600,000 The Year 3 net income was $242,000 and the Year 2 net income was $308,000. No dividends on common stock were declared during the 3 years. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for Years 2 and 3. If required, round your answers to one decimal place. i cant figure out the stockholders equity or common stockholders equity
Entity A reported the following items on its balance sheet at the end of the current year. All accounts are listed. Cash $ 53,000 1,500 Accounts payable $ 15,000 Taxes payable Supplies Property, plant, & equip. 65,000 5,500 Long-term debt 48,000 Accounts receivable 40,000 Inventory 15,000 Common stock 60,000 Retained earnings ? What amount will Entity A report on its balance sheet for Total Assets? $108,000 $109,500 $68,500 $174,500
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
Ratio of liabilities to stockholders equity intrest earned The following data were taken from the financial statements of Hunters Inc.for December 31 of two recent years: The income before income tax was $480,000 and $420,000 for the current and previous years,respectively. a. Determine the ratio of liabilities to stockholders equity at the end of each year.Round to one decimal place. b. Determine the times interest earned ratio for both years.Round to one decimal place. c. What conclusion can be drawn from these data as the company's ability to meet its currently maturing debts?
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Subject: accounting
The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $629,337 $589,332 Total investments 60,228 40,363 Total property, plant, and equipment 861,159 681,074 Total current liabilities 102,094 83,445 Total long-term liabilities 323,402 228,617 Preferred 9% stock, $100 par 95,941 95,941 Common stock, $10 par 559,966 559,966 Paid-in capital in excess of par-common stock 66,297 66,297 Retained earnings 403,024 276,503 Using the balance sheets for Kellman Company, if net income is $119,929 and interest expense is $36,940 for Year 2, what is the return on total assets for the year (round percent to two decimal points)? Oa. 10.96% Ob. 7.73% Oc. 9.15% Od. 11.29%
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,600,000 Preferred $5 stock, $50 par 211,000 Common stock, $10 par 1,635,250 Income before income tax expense was $409,600,and income taxes were $61,450 for the current year. Cash dividends paid on common stock during the current year totaled $89,939. The common stock was selling for $22 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, If required. a. Times interest earmed ratio times b. Earnings per share on common stock C. Priceeamings rabo d. Divioends per share of common stock e. Dividene yd
Financial statement data for the current year for Hanz Corp. are as follows: Line Item Description Amount Net income $5,700,000 Preferred dividends $70,000 Average number of common shares outstanding 200,000 The earnings per share for the current year are? a.$28.15 b.$28.50 c.$28.85 d.$0.35
Subject: accounting
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On December 31. Sulfur Corporation has the following data available: Net Income $140,000 Interest expense 20,000 Total assets at the beginning of the year 720,000 Toital assets at the end of the year 810,000 Total common stockholders' equity at the beginning of the year 440,000 Total common stockholders' equity at the end of the year 300,000 What is return on equity? A. 32.43% B. 27.03% C. 37.84% D. 15.69%

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