The cooperative operates its plan according to a five-year base period. Suppose the board of directors has determined that the cooperative must have an additional $300 of equity capital to meet its financial requirements during the next year. The balance of each member's equity account is shown in column 2 of the table. Patronage attributable to each member during the five-year base period is shown in column 3. MEMBER Beginning Patronage during last five years Equity A 1000 180 3000 300 3500 120 7500 600 Required : Calculate The adjustment to be made in each member's equity account !
The cooperative operates its plan according to a five-year base period. Suppose the board of directors has determined that the cooperative must have an additional $300 of equity capital to meet its financial requirements during the next year. The balance of each member's equity account is shown in column 2 of the table. Patronage attributable to each member during the five-year base period is shown in column 3. MEMBER Beginning Patronage during last five years Equity A 1000 180 3000 300 3500 120 7500 600 Required : Calculate The adjustment to be made in each member's equity account !
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The cooperative operates its plan according to a five-year base period. Suppose the board of directors
has determined that the cooperative must have an additional $300 of equity capital to meet its financial
requirements during the next year. The balance of each member's equity account is shown in column
2 of the table. Patronage attributable to each member during the five-year base period is shown in
column 3.
Required : Calculate The adjustment to be made in each member's equity account
Transcribed Image Text:The cooperative operates its plan according to a five-year base period. Suppose the board of directors
has determined that the cooperative must have an additional $300 of equity capital to meet its financial
requirements during the next year. The balance of each member's equity account is shown in column
2 of the table. Patronage attributable to each member during the five-year base period is shown in
column 3.
MEMBER Beginning
Patronage during
last five years
Equity
A
1000
180
В
3000
300
3500
120
7500
600
Required : Calculate The adjustment to be made in each member's equity account!
Equity adjustment calculation
Adjusted
Equity
Requirement
Share of Total
MEMBER Beginning
Equity
Patronage during
last five years
Equity
Adjustment
Cooperative
patronage
A
1000
180
B
3000
300
C
3500
120
7500
600
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