Question

1.The net assets of a corporation are equal to: Total assets - total liabilities. Total assets...

1.The net assets of a corporation are equal to:

Total assets - total liabilities.

Total assets + total liabilities.

Total assets + retained earnings.

Total assets - retained earnings.

2.

Which statement is true about a stock split?

A change in total stockholders' equity depends upon whether it is a 2-for-1 split or a 3-for-1 split.

Total shareholders' equity decreases.

Total shareholders' equity remains the same.

Total shareholders' equity increases.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. Option A... Total assets - Total liabilities

Net assets is defined as total assets minus total liabilities. In a corporation the amount of net assets is reported as stockholders' equity.

2. Option C... Total shareholders equity remain the same.

When a company declares a stock split, the number of shares of that company increases, but the market cap remains the same. Existing shares split, but the underlying value remains the same.

Please UPVOTE if you are satisfied with the answer :)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The condensed balance sheet of Oriole Corporation reports the following: ORIOLE CORPORATION Balance Sheet (partial) June...
The condensed balance sheet of Oriole Corporation reports the following: ORIOLE CORPORATION Balance Sheet (partial) June 30, 2021 Total assets $11,560,000 Liabilities and shareholders’ equity      Total liabilities $3,736,000      Shareholders’ equity         Common shares, unlimited number authorized, 440,000 issued 1,760,000         Retained earnings 6,064,000         Total shareholders’ equity 7,824,000 Total liabilities and shareholders’ equity $11,560,000 The market price of the common shares is currently $18 per share. Oriole wants to assess the impact of three possible alternatives on the corporation and its shareholders. The...
Income Statement, Retained Earnings Statement, and Balance Sheet The following financial data were adapted from a...
Income Statement, Retained Earnings Statement, and Balance Sheet The following financial data were adapted from a recent annual report of Target Corporation for the year ending January 31. In millions Accounts payable $13,714 Cash 1,588 Common stock 5,724 Cost of goods sold 95,720 Debt and other borrowings 34,966 Income tax expense 3,054 Interest expense 1,732 Inventories 15,836 Other assets 5,684 Other expenses 5,154 Other liabilities 12,938 Property, plant, and equipment 58,298 Sales 136,932 Selling, general, and administrative expenses 28,212 Instructions:...
On January 1, 20X3, Guild Corporation reported total assets of $475,000, liabilities of $262,000, and stockholders’...
On January 1, 20X3, Guild Corporation reported total assets of $475,000, liabilities of $262,000, and stockholders’ equity of $213,000. At that date, Bristol Corporation reported total assets of $188,000, liabilities of $127,000, and stockholders’ equity of $61,000. Following lengthy negotiations, Guild paid Bristol’s existing shareholders $51,850 in cash for 85 percent of the voting common shares of Bristol. Required: Immediately after Guild purchased the Bristol shares a. What amount of total assets did Guild report in its individual balance sheet?...
Given the financial statements for Jones Corporation and Smith Corporation: JONES CORPORATION Current Assets Liabilities Cash...
Given the financial statements for Jones Corporation and Smith Corporation: JONES CORPORATION Current Assets Liabilities Cash $ 29,400 Accounts payable $ 103,000 Accounts receivable 88,300 Bonds payable (long term) 80,100 Inventory 54,500 Long-Term Assets Stockholders' Equity Gross fixed assets $ 508,000 Common stock $ 150,000 Less: Accumulated depreciation 156,800 Paid-in capital 70,000 Net fixed assets* 351,200 Retained earnings 120,300 Total assets $ 523,400 Total liabilities and equity $ 523,400 Sales (on credit) $ 1,845,000 Cost of goods sold 757,000 Gross...
Following are partially completed financial statements​ (income statement, statement of retained​ earnings, and balance​ sheet) for...
Following are partially completed financial statements​ (income statement, statement of retained​ earnings, and balance​ sheet) for Loving Corporation. Complete the financial statements. All amounts are in millions. Loving Corporation Income Statement Year Ended December 31, 2018 (millions) Net sales $186 Expenses 106 Net income (loss) $ a Loving Corporation Statement of Retained Earnings Year Ended December 31, 2018 (millions) Beginning retained earnings $72 Net income b Cash dividends declared (9) Ending retained earnings $ c Loving Corporation Balance Sheet December...
Which statement is true for the declaration and distribution of a property dividend but not a...
Which statement is true for the declaration and distribution of a property dividend but not a small stock dividend? Select one: a. Retained Earnings decreases. b. Par value per share decreases. c. Contributed capital increases. d. Total stockholders' equity does not change. e. Total assets decrease.
Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash...
Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,280 $ 1,560 Accounts receivable, net 12,300 9,100 Inventory 9,700 8,200 Prepaid expenses 1,800 2,100 Total current assets 25,080 20,960 Property and equipment: Land 6,000 6,000 Buildings and equipment, net 19,200 19,000 Total property and equipment 25,200 25,000 Total assets $ 50,280 $ 45,960 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 9,500 $ 8,300 Accrued liabilities 600 700 Notes payable, short...
The Chan Corporation purchased the net assets (existing liabilities were assumed) of the Tonta Company for...
The Chan Corporation purchased the net assets (existing liabilities were assumed) of the Tonta Company for $900,000 cash. The balance sheet for the Tonta Company on the date of acquisition showed the following: Assets Current assets $100,000 Equipment 300,000 Accumulated depreciation (100,000) Plant 600,000 Accumulated depreciation (250,000) Total $650,000 Liabilities and Equity Bonds payable, 8% $200,000 Common stock, $1 par 100,000 Paid-in capital in excess of par 200,000 Retained earnings 150,000 Total $650,000 Required: The equipment has a fair value...
Calculating the Average Total Assets and the Return on Assets The income statement, statement of retained...
Calculating the Average Total Assets and the Return on Assets The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows. Also, assume a tax rate of 47%. Somerville Company Income Statement For the Year Ended December 31, 20X2 Amount Percent Net sales $8,281,989 100.0% Less: Cost of goods sold (5,383,293) 65.0    Gross margin $2,898,696 35.0    Less: Operating expenses (1,323,368) 16.0    Operating income $1,575,328 19.0    Less: Interest expense (50,000) 0.6    Income before taxes $1,525,328 18.4   ...
Income Statement, Retained Earnings Statement, and Balance Sheet The amounts of the assets and liabilities of...
Income Statement, Retained Earnings Statement, and Balance Sheet The amounts of the assets and liabilities of Glacier Travel Service as of September 30, 20Y6, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings were $150,000, and the common stock was $50,000 as of October 1, 20Y5, the beginning of the current year. Dividends of $10,000 were paid during the current year. Accounts payable $175,000 Accounts receivable 321,000 Cash 166,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT