Determine the amount of stockholders’ equity of Company EM.

Question

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 16E

1.

To determine

Determine the amount of stockholders’ equity of Company EM.

1.

Expert Solution

Answer to Problem 16E

The amount of stockholders’ equity of Company EM is $121 billion.

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Total assets is $228 billion and total liabilities is $107 billion.

Determine the amount of stockholders’ equity.

Stockholder's Equity=Assets−LiabilitiesStockholder's Equity=$228 billions−$107 billionsStockholder's Equity=$121 billions

Conclusion

Hence, stockholders’ equity of Company EM is $121 billion.

2.

To determine

Determine the amount of total assets of Company C.

2.

Expert Solution

Answer to Problem 16E

The total assets of Company C are $1,610 billion.

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Given:

Total liabilities is $1,500 billion and stockholders’ equity is $110 billion.

Determine the amount of total assets.

Assets=Liabilities+Stockholder's EquityAssets=$1,500 billion+$110 billionAssets=$,1610 billion

Conclusion

Hence, the total assets of Company C $1,610 billion.

3.

To determine

Determine the amount of total liabilities of Company A.

3.

Expert Solution

Answer to Problem 16E

The total liabilities of Company A is $4.4 billion.

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Liability: Liabilities include the claims of the creditors on the assets of the business. The liability is the obligation of the business.

Given:

Total assets is $4.7 billion and stockholders’ equity is $0.3 billion.

Determine the amount of dividend paid during the year.

Liabilities=Assets−Stockholder's EquityLiabilities=$4.7 billion−$0.3 billionLiabilities=$4.4 billion

Conclusion

Hence, total liabilities of Company A is $4.4 billion

4.

To determine

Determine the amount of change in stockholders equity of Company N.

4.

Expert Solution

Answer to Problem 16E

The amount of change in stockholders equity of Company N is $0.9 billion.

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Increase in assets is $1.2 billion and increase in liabilities is $0.3 billion.

Determine the amount of change in stockholders equity.

Change in Stockholder's Equity={Change in Assets}−{Change in Liabilities}Change in Stockholder's Equity=$1.2 billion−$0.3 billionChange in Stockholder's Equity=$0.9 billion

Conclusion

Hence, the change in stockholders equity of Company N is $0.9 billion.

5.

To determine

Determine the amount of change in total assets of Company K.

5.

Expert Solution

Answer to Problem 16E

The change in total assets of Company K is decreased by $0.32 billion.

Explanation of Solution

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Decrease in liabilities is $0.34 billion and increase in stockholders’ equity is $0.02 billion.

Determine the amount of change in total assets.

Change in Assets={Change in Liabilities}+{Change in Stockholder's Equity}Change in Assets=($0.34 billion)+$0.02 billionChange in Assets=$0.32 billion (Decrease in assets)

Conclusion

Hence, the total assets of Company K is decreased by $0.32 billion.

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Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 16E

1.

To determine

Determine the amount of stockholders’ equity of Company EM.

1.

Expert Solution

Answer to Problem 16E

The amount of stockholders’ equity of Company EM is $121 billion.

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Total assets is $228 billion and total liabilities is $107 billion.

Determine the amount of stockholders’ equity.

Stockholder's Equity=Assets−LiabilitiesStockholder's Equity=$228 billions−$107 billionsStockholder's Equity=$121 billions

Conclusion

Hence, stockholders’ equity of Company EM is $121 billion.

2.

To determine

Determine the amount of total assets of Company C.

2.

Expert Solution

Answer to Problem 16E

The total assets of Company C are $1,610 billion.

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Given:

Total liabilities is $1,500 billion and stockholders’ equity is $110 billion.

Determine the amount of total assets.

Assets=Liabilities+Stockholder's EquityAssets=$1,500 billion+$110 billionAssets=$,1610 billion

Conclusion

Hence, the total assets of Company C $1,610 billion.

3.

To determine

Determine the amount of total liabilities of Company A.

3.

Expert Solution

Answer to Problem 16E

The total liabilities of Company A is $4.4 billion.

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Liability: Liabilities include the claims of the creditors on the assets of the business. The liability is the obligation of the business.

Given:

Total assets is $4.7 billion and stockholders’ equity is $0.3 billion.

Determine the amount of dividend paid during the year.

Liabilities=Assets−Stockholder's EquityLiabilities=$4.7 billion−$0.3 billionLiabilities=$4.4 billion

Conclusion

Hence, total liabilities of Company A is $4.4 billion

4.

To determine

Determine the amount of change in stockholders equity of Company N.

4.

Expert Solution

Answer to Problem 16E

The amount of change in stockholders equity of Company N is $0.9 billion.

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Increase in assets is $1.2 billion and increase in liabilities is $0.3 billion.

Determine the amount of change in stockholders equity.

Change in Stockholder's Equity={Change in Assets}−{Change in Liabilities}Change in Stockholder's Equity=$1.2 billion−$0.3 billionChange in Stockholder's Equity=$0.9 billion

Conclusion

Hence, the change in stockholders equity of Company N is $0.9 billion.

5.

To determine

Determine the amount of change in total assets of Company K.

5.

Expert Solution

Answer to Problem 16E

The change in total assets of Company K is decreased by $0.32 billion.

Explanation of Solution

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Decrease in liabilities is $0.34 billion and increase in stockholders’ equity is $0.02 billion.

Determine the amount of change in total assets.

Change in Assets={Change in Liabilities}+{Change in Stockholder's Equity}Change in Assets=($0.34 billion)+$0.02 billionChange in Assets=$0.32 billion (Decrease in assets)

Conclusion

Hence, the total assets of Company K is decreased by $0.32 billion.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 16E

1.

To determine

Determine the amount of stockholders’ equity of Company EM.

1.

Expert Solution

Answer to Problem 16E

The amount of stockholders’ equity of Company EM is $121 billion.

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Total assets is $228 billion and total liabilities is $107 billion.

Determine the amount of stockholders’ equity.

Stockholder's Equity=Assets−LiabilitiesStockholder's Equity=$228 billions−$107 billionsStockholder's Equity=$121 billions

Conclusion

Hence, stockholders’ equity of Company EM is $121 billion.

2.

To determine

Determine the amount of total assets of Company C.

2.

Expert Solution

Answer to Problem 16E

The total assets of Company C are $1,610 billion.

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Given:

Total liabilities is $1,500 billion and stockholders’ equity is $110 billion.

Determine the amount of total assets.

Assets=Liabilities+Stockholder's EquityAssets=$1,500 billion+$110 billionAssets=$,1610 billion

Conclusion

Hence, the total assets of Company C $1,610 billion.

3.

To determine

Determine the amount of total liabilities of Company A.

3.

Expert Solution

Answer to Problem 16E

The total liabilities of Company A is $4.4 billion.

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Liability: Liabilities include the claims of the creditors on the assets of the business. The liability is the obligation of the business.

Given:

Total assets is $4.7 billion and stockholders’ equity is $0.3 billion.

Determine the amount of dividend paid during the year.

Liabilities=Assets−Stockholder's EquityLiabilities=$4.7 billion−$0.3 billionLiabilities=$4.4 billion

Conclusion

Hence, total liabilities of Company A is $4.4 billion

4.

To determine

Determine the amount of change in stockholders equity of Company N.

4.

Expert Solution

Answer to Problem 16E

The amount of change in stockholders equity of Company N is $0.9 billion.

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Increase in assets is $1.2 billion and increase in liabilities is $0.3 billion.

Determine the amount of change in stockholders equity.

Change in Stockholder's Equity={Change in Assets}−{Change in Liabilities}Change in Stockholder's Equity=$1.2 billion−$0.3 billionChange in Stockholder's Equity=$0.9 billion

Conclusion

Hence, the change in stockholders equity of Company N is $0.9 billion.

5.

To determine

Determine the amount of change in total assets of Company K.

5.

Expert Solution

Answer to Problem 16E

The change in total assets of Company K is decreased by $0.32 billion.

Explanation of Solution

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Decrease in liabilities is $0.34 billion and increase in stockholders’ equity is $0.02 billion.

Determine the amount of change in total assets.

Change in Assets={Change in Liabilities}+{Change in Stockholder's Equity}Change in Assets=($0.34 billion)+$0.02 billionChange in Assets=$0.32 billion (Decrease in assets)

Conclusion

Hence, the total assets of Company K is decreased by $0.32 billion.

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 16E

1.

To determine

Determine the amount of stockholders’ equity of Company EM.

1.

Expert Solution

Answer to Problem 16E

The amount of stockholders’ equity of Company EM is $121 billion.

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Total assets is $228 billion and total liabilities is $107 billion.

Determine the amount of stockholders’ equity.

Stockholder's Equity=Assets−LiabilitiesStockholder's Equity=$228 billions−$107 billionsStockholder's Equity=$121 billions

Conclusion

Hence, stockholders’ equity of Company EM is $121 billion.

2.

To determine

Determine the amount of total assets of Company C.

2.

Expert Solution

Answer to Problem 16E

The total assets of Company C are $1,610 billion.

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Given:

Total liabilities is $1,500 billion and stockholders’ equity is $110 billion.

Determine the amount of total assets.

Assets=Liabilities+Stockholder's EquityAssets=$1,500 billion+$110 billionAssets=$,1610 billion

Conclusion

Hence, the total assets of Company C $1,610 billion.

3.

To determine

Determine the amount of total liabilities of Company A.

3.

Expert Solution

Answer to Problem 16E

The total liabilities of Company A is $4.4 billion.

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Liability: Liabilities include the claims of the creditors on the assets of the business. The liability is the obligation of the business.

Given:

Total assets is $4.7 billion and stockholders’ equity is $0.3 billion.

Determine the amount of dividend paid during the year.

Liabilities=Assets−Stockholder's EquityLiabilities=$4.7 billion−$0.3 billionLiabilities=$4.4 billion

Conclusion

Hence, total liabilities of Company A is $4.4 billion

4.

To determine

Determine the amount of change in stockholders equity of Company N.

4.

Expert Solution

Answer to Problem 16E

The amount of change in stockholders equity of Company N is $0.9 billion.

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Increase in assets is $1.2 billion and increase in liabilities is $0.3 billion.

Determine the amount of change in stockholders equity.

Change in Stockholder's Equity={Change in Assets}−{Change in Liabilities}Change in Stockholder's Equity=$1.2 billion−$0.3 billionChange in Stockholder's Equity=$0.9 billion

Conclusion

Hence, the change in stockholders equity of Company N is $0.9 billion.

5.

To determine

Determine the amount of change in total assets of Company K.

5.

Expert Solution

Answer to Problem 16E

The change in total assets of Company K is decreased by $0.32 billion.

Explanation of Solution

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Decrease in liabilities is $0.34 billion and increase in stockholders’ equity is $0.02 billion.

Determine the amount of change in total assets.

Change in Assets={Change in Liabilities}+{Change in Stockholder's Equity}Change in Assets=($0.34 billion)+$0.02 billionChange in Assets=$0.32 billion (Decrease in assets)

Conclusion

Hence, the total assets of Company K is decreased by $0.32 billion.

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Answer 5

Chapter 1, Problem 16E

1.

To determine

Determine the amount of stockholders’ equity of Company EM.

1.

Expert Solution

Answer to Problem 16E

The amount of stockholders’ equity of Company EM is $121 billion.

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Total assets is $228 billion and total liabilities is $107 billion.

Determine the amount of stockholders’ equity.

Stockholder's Equity=Assets−LiabilitiesStockholder's Equity=$228 billions−$107 billionsStockholder's Equity=$121 billions

Conclusion

Hence, stockholders’ equity of Company EM is $121 billion.

2.

To determine

Determine the amount of total assets of Company C.

2.

Expert Solution

Answer to Problem 16E

The total assets of Company C are $1,610 billion.

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Given:

Total liabilities is $1,500 billion and stockholders’ equity is $110 billion.

Determine the amount of total assets.

Assets=Liabilities+Stockholder's EquityAssets=$1,500 billion+$110 billionAssets=$,1610 billion

Conclusion

Hence, the total assets of Company C $1,610 billion.

3.

To determine

Determine the amount of total liabilities of Company A.

3.

Expert Solution

Answer to Problem 16E

The total liabilities of Company A is $4.4 billion.

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Liability: Liabilities include the claims of the creditors on the assets of the business. The liability is the obligation of the business.

Given:

Total assets is $4.7 billion and stockholders’ equity is $0.3 billion.

Determine the amount of dividend paid during the year.

Liabilities=Assets−Stockholder's EquityLiabilities=$4.7 billion−$0.3 billionLiabilities=$4.4 billion

Conclusion

Hence, total liabilities of Company A is $4.4 billion

4.

To determine

Determine the amount of change in stockholders equity of Company N.

4.

Expert Solution

Answer to Problem 16E

The amount of change in stockholders equity of Company N is $0.9 billion.

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Increase in assets is $1.2 billion and increase in liabilities is $0.3 billion.

Determine the amount of change in stockholders equity.

Change in Stockholder's Equity={Change in Assets}−{Change in Liabilities}Change in Stockholder's Equity=$1.2 billion−$0.3 billionChange in Stockholder's Equity=$0.9 billion

Conclusion

Hence, the change in stockholders equity of Company N is $0.9 billion.

5.

To determine

Determine the amount of change in total assets of Company K.

5.

Expert Solution

Answer to Problem 16E

The change in total assets of Company K is decreased by $0.32 billion.

Explanation of Solution

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Decrease in liabilities is $0.34 billion and increase in stockholders’ equity is $0.02 billion.

Determine the amount of change in total assets.

Change in Assets={Change in Liabilities}+{Change in Stockholder's Equity}Change in Assets=($0.34 billion)+$0.02 billionChange in Assets=$0.32 billion (Decrease in assets)

Conclusion

Hence, the total assets of Company K is decreased by $0.32 billion.

Answer 6

Chapter 1, Problem 16E

1.

To determine

Determine the amount of stockholders’ equity of Company EM.

1.

Expert Solution

Answer to Problem 16E

The amount of stockholders’ equity of Company EM is $121 billion.

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Total assets is $228 billion and total liabilities is $107 billion.

Determine the amount of stockholders’ equity.

Stockholder's Equity=Assets−LiabilitiesStockholder's Equity=$228 billions−$107 billionsStockholder's Equity=$121 billions

Conclusion

Hence, stockholders’ equity of Company EM is $121 billion.

Answer 7

Chapter 1, Problem 16E

1.

To determine

Determine the amount of stockholders’ equity of Company EM.

Answer 8

1.

Expert Solution

Answer to Problem 16E

The amount of stockholders’ equity of Company EM is $121 billion.

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Total assets is $228 billion and total liabilities is $107 billion.

Determine the amount of stockholders’ equity.

Stockholder's Equity=Assets−LiabilitiesStockholder's Equity=$228 billions−$107 billionsStockholder's Equity=$121 billions

Answer 13

Conclusion

Hence, stockholders’ equity of Company EM is $121 billion.

Answer 14

2.

To determine

Determine the amount of total assets of Company C.

2.

Expert Solution

Answer to Problem 16E

The total assets of Company C are $1,610 billion.

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Given:

Total liabilities is $1,500 billion and stockholders’ equity is $110 billion.

Determine the amount of total assets.

Assets=Liabilities+Stockholder's EquityAssets=$1,500 billion+$110 billionAssets=$,1610 billion

Conclusion

Hence, the total assets of Company C $1,610 billion.

Answer 15

2.

To determine

Determine the amount of total assets of Company C.

Answer 16

2.

Expert Solution

Answer to Problem 16E

The total assets of Company C are $1,610 billion.

Answer 17

2.

Expert Solution

Answer 18

2.

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Given:

Total liabilities is $1,500 billion and stockholders’ equity is $110 billion.

Determine the amount of total assets.

Assets=Liabilities+Stockholder's EquityAssets=$1,500 billion+$110 billionAssets=$,1610 billion

Answer 21

Conclusion

Hence, the total assets of Company C $1,610 billion.

Answer 22

3.

To determine

Determine the amount of total liabilities of Company A.

3.

Expert Solution

Answer to Problem 16E

The total liabilities of Company A is $4.4 billion.

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Liability: Liabilities include the claims of the creditors on the assets of the business. The liability is the obligation of the business.

Given:

Total assets is $4.7 billion and stockholders’ equity is $0.3 billion.

Determine the amount of dividend paid during the year.

Liabilities=Assets−Stockholder's EquityLiabilities=$4.7 billion−$0.3 billionLiabilities=$4.4 billion

Conclusion

Hence, total liabilities of Company A is $4.4 billion

Answer 23

3.

To determine

Determine the amount of total liabilities of Company A.

Answer 24

3.

Expert Solution

Answer to Problem 16E

The total liabilities of Company A is $4.4 billion.

Answer 25

3.

Expert Solution

Answer 26

3.

Expert Solution

Answer 27

Expert Solution

Answer 28

Explanation of Solution

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Liability: Liabilities include the claims of the creditors on the assets of the business. The liability is the obligation of the business.

Given:

Total assets is $4.7 billion and stockholders’ equity is $0.3 billion.

Determine the amount of dividend paid during the year.

Liabilities=Assets−Stockholder's EquityLiabilities=$4.7 billion−$0.3 billionLiabilities=$4.4 billion

Answer 29

Conclusion

Hence, total liabilities of Company A is $4.4 billion

Answer 30

4.

To determine

Determine the amount of change in stockholders equity of Company N.

4.

Expert Solution

Answer to Problem 16E

The amount of change in stockholders equity of Company N is $0.9 billion.

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Increase in assets is $1.2 billion and increase in liabilities is $0.3 billion.

Determine the amount of change in stockholders equity.

Change in Stockholder's Equity={Change in Assets}−{Change in Liabilities}Change in Stockholder's Equity=$1.2 billion−$0.3 billionChange in Stockholder's Equity=$0.9 billion

Conclusion

Hence, the change in stockholders equity of Company N is $0.9 billion.

Answer 31

4.

To determine

Determine the amount of change in stockholders equity of Company N.

Answer 32

4.

Expert Solution

Answer to Problem 16E

The amount of change in stockholders equity of Company N is $0.9 billion.

Answer 33

4.

Expert Solution

Answer 34

4.

Expert Solution

Answer 35

Expert Solution

Answer 36

Explanation of Solution

Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.

Balance Sheet:

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Increase in assets is $1.2 billion and increase in liabilities is $0.3 billion.

Determine the amount of change in stockholders equity.

Change in Stockholder's Equity={Change in Assets}−{Change in Liabilities}Change in Stockholder's Equity=$1.2 billion−$0.3 billionChange in Stockholder's Equity=$0.9 billion

Answer 37

Conclusion

Hence, the change in stockholders equity of Company N is $0.9 billion.

Answer 38

5.

To determine

Determine the amount of change in total assets of Company K.

5.

Expert Solution

Answer to Problem 16E

The change in total assets of Company K is decreased by $0.32 billion.

Explanation of Solution

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Decrease in liabilities is $0.34 billion and increase in stockholders’ equity is $0.02 billion.

Determine the amount of change in total assets.

Change in Assets={Change in Liabilities}+{Change in Stockholder's Equity}Change in Assets=($0.34 billion)+$0.02 billionChange in Assets=$0.32 billion (Decrease in assets)

Conclusion

Hence, the total assets of Company K is decreased by $0.32 billion.

Answer 39

5.

To determine

Determine the amount of change in total assets of Company K.

Answer 40

5.

Expert Solution

Answer to Problem 16E

The change in total assets of Company K is decreased by $0.32 billion.

Answer 41

5.

Expert Solution

Answer 42

5.

Expert Solution

Answer 43

Expert Solution

Answer 44

Explanation of Solution

Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:

Assets=Liabilities+Stockholder's Equity

Given:

Decrease in liabilities is $0.34 billion and increase in stockholders’ equity is $0.02 billion.

Determine the amount of change in total assets.

Change in Assets={Change in Liabilities}+{Change in Stockholder's Equity}Change in Assets=($0.34 billion)+$0.02 billionChange in Assets=$0.32 billion (Decrease in assets)