Net Income and Stockholders' Equity for Four Businesses Four different corporations, Aries, Gemini, Leo, and Pisces, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders' equity, are summarized as follows: Total Assets Total Liabilities Beginning of the year $72,900 $29,200 End of the year $116,600 $49,000 On 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.) Aries: No additional common stock was issued, and no dividends were paid. Gemini: No additional common stock was issued, but dividends of $4,800 were paid. Leo: Additional common stock of $22,100 was issued, but no dividends were paid. Pisces: Additional common stock of $22,600 was issued, and dividends of $6,500 were paid. Enter all amounts as positive numbers: Aries: Gemini: Leo: Pisces:
Net Income and Stockholders' Equity for Four Businesses Four different corporations, Aries, Gemini, Leo, and Pisces, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders' equity, are summarized as follows: Total Assets Total Liabilities Beginning of the year $72,900 $29,200 End of the year $116,600 $49,000 On 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.) Aries: No additional common stock was issued, and no dividends were paid. Gemini: No additional common stock was issued, but dividends of $4,800 were paid. Leo: Additional common stock of $22,100 was issued, but no dividends were paid. Pisces: Additional common stock of $22,600 was issued, and dividends of $6,500 were paid. Enter all amounts as positive numbers: Aries: Gemini: Leo: Pisces:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Net Income and
Four different corporations, Aries, Gemini, Leo, and Pisces, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders' equity, are summarized as follows:
| Total Assets | Total Liabilities | |||
| Beginning of the year | $72,900 | $29,200 | ||
| End of the year | $116,600 | $49,000 |
On 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.)
| Aries: | No additional common stock was issued, and no dividends were paid. |
| Gemini: | No additional common stock was issued, but dividends of $4,800 were paid. |
| Leo: | Additional common stock of $22,100 was issued, but no dividends were paid. |
| Pisces: | Additional common stock of $22,600 was issued, and dividends of $6,500 were paid. |
Enter all amounts as positive numbers:
Aries:
Gemini:
Leo:
Pisces:
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