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Wright Enterprises was incorporated two years ago by issuing 4,000 shares of common stock at $500 each and borrowing $150,000 from a bank on a long-term note. Last year, Wright reported net income of $45,000 and paid a cash dividend of $2,000. Last year, the company also borrowed an additional $350,000 from the bank. What was the total assets on Wright's balance sheet at the end of the year last year?

Wright Enterprises was incorporated two years ago by issuing 4,000 shares of common stock at $500 each and borrowing $150,000 from a bank on a long-term note. Last year, Wright reported net income of $45,000 and paid a cash dividend of $2,000. Last year, the company also borrowed an additional $350,000 from the bank. What was the total assets on Wright's balance sheet at the end of the year last year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter2: The Domestic And International Financial Marketplace
Section2.A: Taxes
Problem 2P
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Please provide the correct answer to this general accounting problem using valid calculations.

Wright Enterprises was incorporated two years ago by issuing 4,000 shares of common stock at $500 each and borrowing $150,000 from a bank on a long-term note. Last year, Wright reported net income of $45,000 and paid a cash dividend of $2,000. Last year, the company also borrowed an additional $350,000 from the bank. What was the total assets on Wright's balance sheet at the end of the year last year?
Transcribed Image Text:Wright Enterprises was incorporated two years ago by issuing 4,000 shares of common stock at $500 each and borrowing $150,000 from a bank on a long-term note. Last year, Wright reported net income of $45,000 and paid a cash dividend of $2,000. Last year, the company also borrowed an additional $350,000 from the bank. What was the total assets on Wright's balance sheet at the end of the year last year?
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