Question

The Baldwin Company currently has the following balances on their balance sheet: Total Assets $239,562 Total...

The Baldwin Company currently has the following balances on their balance sheet: Total Assets $239,562 Total Liabilities $148,310 Retained Earnings $35,008 Suppose next year the Baldwin Company generates $44,200 in net profit, pays $12,000 in dividends, total assets increase by $55,000, and total liabilities remain unchanged. What will ending Baldwins balance in Common Stock be next year?
Select: 1
$375,664
$79,044
$477,880
$143,444

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Step 1: Calculate the amount of Common Stock in previous year.

Common Stock = Total Assets - Total Liabilities - Retained Earnings

Common Stock = $239,562 - $148,310 - $35,008

Common Stock = $56,244

Step 2: Calculate New Retained Earnings & Total Assets (This year)

New Retained Earnings = Retained Earnings (last year) + Net Profit - Dividend paid

New Retained Earnings = 35,008 + 44,200 - 12,000

New Retained Earnings = $67,208

Total Assets (this year) = Assets last year + 55,000 = 239,562 + 55,000

Total Assets (this year) = $294,562

Step 3: Calculate the Common stock amount next year.

Common Stock = Total Assets (this year) - Liabilities - New Retained Earnings

Common Stock = $294,562 - $148,310 - $67,208

Common Stock = $79,044

Second Option ($79,044) is 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 Baldwin Company currently has the following balances on their balance sheet: Total Assets $130,692 Total...
The Baldwin Company currently has the following balances on their balance sheet: Total Assets $130,692 Total Liabilities $57,915 Retained Earnings $62,384 Suppose next year the Baldwin Company generates $44,200 in net profit, pays $12,000 in dividends, total assets increase by $55,000, and total liabilities remain unchanged. What will ending Baldwins balance in Common Stock be next year? Select: 1 $33,193 $97,593 $149,023 $305,991
The Baldwin Company currently has the following balances on their balance sheet: Total Liabilities                      $80,947 Common...
The Baldwin Company currently has the following balances on their balance sheet: Total Liabilities                      $80,947 Common Stock                     $8,708 Retained Earnings               $100,709 Suppose next year the Baldwin Company generates $36,500 in net profit and pays $15,000 in dividends and total liabilities and common stock remain unchanged. What must their total assets be next year? Select: 1 $211,864 $109,417 $190,364 $241,864
The Baldwin Company currently has the following balances on their balance sheet: Total Liabilities                      $147,704 Common...
The Baldwin Company currently has the following balances on their balance sheet: Total Liabilities                      $147,704 Common Stock                     $56,998 Retained Earnings               $47,919 Suppose next year the Baldwin Company generates $36,500 in net profit and pays $15,000 in dividends and total liabilities and common stock remain unchanged. What must their total assets be next year? Select: 1 $274,121 $304,121 $252,621 $104,916
The Baldwin company currently has the following balances on their balance sheet: Assets $198,371 Common Stock...
The Baldwin company currently has the following balances on their balance sheet: Assets $198,371 Common Stock $10,873 Retained earnings $103,433 Suppose next year the Baldwin Company generates $20,000 in net profit, pays $10,000 in dividends, assets change to $151,000, and common stock remains unchanged. What must their total liabilities be next year?
Andrews Company currently has the following balances in their liability and equity accounts: Total Liabilities: $382,903,721...
Andrews Company currently has the following balances in their liability and equity accounts: Total Liabilities: $382,903,721 Common Stock: $14,208,000 Retained Earnings: -$164,212,681 Suppose next year the Andrews Company generates $36,500,000 in Net Profit, pays $15,000,000 in dividends, and total liabilities and common stock remain unchanged. What must their total assets be next year? $254,399,040 -$164,212,681 $284,399,040 $232,899,040
Balance Sheet The following balance sheet contains errors. ATLAS SERVICES CO. Balance Sheet For the Year...
Balance Sheet The following balance sheet contains errors. ATLAS SERVICES CO. Balance Sheet For the Year Ended May 31, 20Y5 Assets   Current assets:   Cash $ 12,000   Accounts payable 47,900   Supplies 4,800   Prepaid insurance 17,400   Land 400,000   Total current assets $482,100 Property, plant, and equipment:   Building $ 225,000   Equipment 90,000   Total property, plant, and equipment 315,000 Total assets $797,100 Liabilities Current liabilities:   Accounts receivable $ 40,800   Accumulated depreciation—building 54,600   Accumulated depreciation—equipment 32,400   Net loss 44,200 Total liabilities $172,000 Stockholders’ Equity   Wages...
uzzy Button Clothing Company has the following end-of-year balance sheet: Fuzzy Button Clothing Company Balance Sheet...
uzzy Button Clothing Company has the following end-of-year balance sheet: Fuzzy Button Clothing Company Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: Current Liabilities: Cash and equivalents $150,000 Accounts payable $250,000 Accounts receivable 400,000 Accrued liabilities 150,000 Inventories 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current Liabilities $500,000 Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment $2,100,000 Total Debt $1,500,000 (cost minus depreciation) Common Equity Common stock 800,000 Retained earnings 700,000...
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:...
Following is the balance sheet of Gibson Company for 2018: GIBSON COMPANY Balance sheet Assets Cash...
Following is the balance sheet of Gibson Company for 2018: GIBSON COMPANY Balance sheet Assets Cash $ 14,550 Marketable securities 7,860 Accounts receivable 12,860 Inventory 10,900 Property and equipment 168,000 Accumulated depreciation (12,900 ) Total assets $ 201,270 Liabilities and Stockholders’ Equity Accounts payable $ 8,090 Current notes payable 3,640 Mortgage payable 4,450 Bonds payable 22,020 Common stock 113,200 Retained earnings 49,870 Total liabilities and stockholders’ equity $ 201,270 The average number of common stock shares outstanding during 2018 was...
Following is the balance sheet of Gibson Company for 2018: GIBSON COMPANY Balance sheet Assets Cash...
Following is the balance sheet of Gibson Company for 2018: GIBSON COMPANY Balance sheet Assets Cash $ 14,550 Marketable securities 7,860 Accounts receivable 12,860 Inventory 10,900 Property and equipment 168,000 Accumulated depreciation (12,900 ) Total assets $ 201,270 Liabilities and Stockholders’ Equity Accounts payable $ 8,090 Current notes payable 3,640 Mortgage payable 4,450 Bonds payable 22,020 Common stock 113,200 Retained earnings 49,870 Total liabilities and stockholders’ equity $ 201,270 The average number of common stock shares outstanding during 2018 was...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT