Answers homework week 3 - IFA

1.

Assets Liabilities

Cash & cash equivalents 820 Accounts payable and other current liabilities 4307

Trade accounts, notes, and other Long-term debt 1843

receivables 934

Inventories 1444 Other liabilities 1549

Investments 649 Total liabilities 7699

Net property, plant, and equipment 2178

Other assets 6414 Stockholders’ Equity

Common stock 339

Retained earnings 4401

Total stockholders’ equity 4740

Total assets 12.439 Total liabilities and equity 12.439



2.
a.

Assets Liabilities

Cash 75.600 Accounts payable 12.000

Accounts receivable 39.000 Note payable 3000

Store and office equipment 73.000 Interest payable 0

Total liabilities 15.000

Stockholders’ equity

Common stock 160.000

Retained earnings 12.600

Total stockholders’ equity 172.600

Total assets 187.600 Total liabilities and equity 187.600



b. Beginning Retained Earning + Net Income – Dividends = Ending Retained Earnings
0 + Net Income (?) – 0 = 12.600 so the net income for the year is $12.600,-

3. Net Income for January = Revenues – Expenses
Net Income = 150.000 – 70.000 – 37.000 – 900 = $42.100