FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Chapter 1, Problem 1.9BE
(a)
Accounting Equation: It is the mathematical equation that shows the relation between assets, liabilities and stockholders’ equity. It shows that assets balances the liabilities / stockholders’ equity. It is expressed as:
Accounting Equation
Figure (1)
To determine
The amount of stockholders’ equity at the end of the year. Follow the below equation to determine the value of stockholders’’ equity:
(b)
To determine
The amount of total assets at the end of the year. Follow the below equation to determine the value of assets:
(c)
To determine
The amount of total liabilities at the end of the year. Follow the below equation to determine the value of liabilities:
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the income statement for Stretch-Tape Corporation reports net sales of $439,900 and net income of $54,780. Average total assets for the year are $830,000. Stockholders’ equity at the beginning of the year was $530,000, and $23,000 was paid to stockholders as dividends during the year. There were no other stockholders’ equity transactions that occurred during the year.Required:Calculate the return on assets, profit margin, asset turnover, and return on equity ratios. (Round your answers to 1 decimal place.)
Profitability Ratios
Return on assets
6.6
%
Profit margin
12.5
%
Asset turnover
times
Return on equity
%
At the beginning of the current fiscal year, the balance sheet for Davis Company showed liabilities of $288,000. During the year,
labilmes decreased by $16,200, assets increased by $58,500, and paid-in capital increased from $27,000 to $172,800 Dividends
declared and paid during the year were $22,500. At the end of the year, stockholders' equity totaled $386,100
Required:
a. Calculate net income (or loss) for the year. Indicate the financial statement effect
Complete this question by entering your answers in the tabs below.
Required A1 Required A2
Calculate net income (or loss) for the year.
Note: Enter decreases with a minus sign to indicate a negative financial statement effect.
Beginning $599,000
Changes
58.500
Changes
Ending
S657,900
Stockholders' Equity
Liabilities
$ 280,000+
(16,200)
RE
284,400
48.600 Not loss
22.500 [Dividends
$271,800+ $ 172.800 $ 213,300 ($386,100 total SE)
PIC
$ 27,000+$
145.800+
Henderson Company had beginning-of-the-year total assets of $360,000 and total liabilities of $216,000.a. If during the year total assets increased by $18,000 and total liabilities increased by $48,000, what is the end-of-year total stockholders’ equity?$Answer114,000b. If during the year total assets increased by $72,000 and total liabilities decreased by $6,000, what is the end-of-year total stockholders’ equity?$Answer222,000c. If during the year total liabilities increased by $48,000 and total stockholders’ equity increased by $42,000, what are the end-of-year total assets?
Chapter 1 Solutions
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Accounting is ingrained in our society and is...Ch. 1 - Prob. 5QCh. 1 - Prob. 6QCh. 1 - What are the three main types of business...Ch. 1 - Prob. 8QCh. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - What are the three main categories of the...Ch. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Which of these items are liabilities of White...Ch. 1 - How are each of the following financial statements...Ch. 1 - What is the purpose of the management discussion...Ch. 1 - Prob. 19QCh. 1 - Prob. 20QCh. 1 - Prob. 21QCh. 1 - Prob. 1.1BECh. 1 - Match each of the following types of evaluation...Ch. 1 - Indicate in which part of the statement of cash...Ch. 1 - Prob. 1.4BECh. 1 - Prob. 1.6BECh. 1 - Indicate which statement you would examine to find...Ch. 1 - Prob. 1.8BECh. 1 - Prob. 1.9BECh. 1 - Prob. 1.10BECh. 1 - Prob. 1.11BECh. 1 - Prob. 1.1DIECh. 1 - Prob. 1.2DIECh. 1 - Prob. 1.3bDIECh. 1 - Here is a list of words or phi uses discussed in...Ch. 1 - Prob. 1.4ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.12ECh. 1 - Prob. 1.19ECh. 1 - Prob. 1.21ECh. 1 - Prob. 1.1APCh. 1 - Financial decisions often place heavier emphasis...Ch. 1 - INTERPRETING FINANCIAL STATEMENTS Xerox was not...Ch. 1 - Prob. 1.5EYCTCh. 1 - Prob. 1.9EYCTCh. 1 - Prob. 1.10EYCTCh. 1 - Prob. 1.1IPCh. 1 - Prob. 1.2IPCh. 1 - Prob. 1.3IP
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