Use the starting balance sheet, income statement, and the list of changes to answer the question.
Gulf
Shipping Company Balance Sheet As of December 31, 2017 (amounts in thousands) |
|||
---|---|---|---|
Cash | 38,000 | Liabilities | 22,000 |
Other Assets | 27,000 | Equity | 43,000 |
Total Assets | 65,000 | Total Liabilities & Equity | 65,000 |
Gulf
Shipping Company Income Statement January 1 to March 31, 2018 (amounts in thousands) |
|
---|---|
Revenue | 5,100 |
Expenses | 2,800 |
Net Income | 2,300 |
Between January 1 and March 31, 2018:
1. Cash decreases by $100,000
2. Other Assets do not change
3. Paid-In Capital does not change
4. Dividends paid of $400,000
What is the value for Liabilities on March 31, 2018?
Please specify your answer in the same units as the financial statements.
Value of Equity on March 31, 2018= $20,000.
Working
Assets= | Liabilities+ | Equity | ||
Cash | Other assets | |||
Balance son March 31 -2017 | $ 38,000.00 | $ 27,000.00 | $ 22,000.00 | $ 43,000.00 |
Change | $ (100.00) | $ - | $ (2,000.00) | $ 1,900.00 |
Balance son March 31 -2018 | $ 37,900.00 | $ 27,000.00 | $ 20,000.00 | $ 44,900.00 |
Increase in equity= Net income minus dividends
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