1) For each of the following companies, calculate the missing amounts.

	Assets	Liabilities	Equity
Parcel Corp.	$100	$80	?
Box Inc.	$230	?	$170
Bag Co.	?	$45	$105

2) Ground Inc. had $100 of equity at the beginning of the year. During the year, Ground earned $30 of net income (profit) and paid $12 of cash dividends to its owners (shareholders).

a) How do the net income and dividends affect equity? (i.e. do they increase it, decrease it, or have no effect)

b) How much equity does Ground have at the end of the year?

3) Thinking about the accounting equation, explain why profits are beneficial to the owners of a company

1) For each of the following companies, calculate the missing amounts. Assets Liabilities Equitv Parcel Corp. $100 S80 Box Inc. S230? Bag Co $170 S45 $105 Answer: 2) Ground Inc. had S100 of equity at the beginning of the year. During the year, Ground earned S30 of net income (profit) and paid S12 of cash dividends to its owners (shareholders). a) How do the net income and dividends affect equity? d.e. do they increase it, decrease it, or have no effect) b) How much equity does Ground have at the end of the year? 3) Thinking about the accounting equation, explain why profits are beneficial to the owners of a companv 1) For each of the following companies, calculate the missing amounts. Assets Liabilities Equitv Parcel Corp. $100 S80 Box Inc. S230? Bag Co $170 S45 $105 Answer: 2) Ground Inc. had S100 of equity at the beginning of the year. During the year, Ground earned S30 of net income (profit) and paid S12 of cash dividends to its owners (shareholders). a) How do the net income and dividends affect equity? d.e. do they increase it, decrease it, or have no effect) b) How much equity does Ground have at the end of the year? 3) Thinking about the accounting equation, explain why profits are beneficial to the owners of a companv