1. For each of the independent? cases, compute the amounts? (in thousands) for the items indicated by letters.

Before completing each? case, define the following financial equations that we will need to solve for the missing amounts. Begin by selecting the formula to calculate net income.

Revenues

-

Expenses

=

Net income

Select the formula to show the change in the retained earnings account.

Beginning retained earnings

+

Net income

-

Dividends

=

Ending retained earnings

Select the formula to show the change in the? paid-in capital account.

Beginning paid-in capital

+

Additional investment

=

Ending paid-in capital

Select the labels of the expanded balance sheet equation.

Liabilities

+

Retained earnings

+

Paid-in capital

=

Total assets

For each of the independent? cases, compute the amounts? (in thousands) for the missing? items, beginning with Case 1.

Case	1
Revenues	$40
Expenses	20
Dividends declared	0
Additional investment by stockholders	0
Net income	20
Retained earnings
Beginning of year	90
End of year	110
Paid-in capital
Beginning of year	35
End of year	35
Total assets
Beginning of year	150
End of year	200
Total liabilities
Beginning of year	25
End of year	55

2

150

130

21

5

20

140

139

45

50

240

375

55

186

3

$330

240

15

40

122

30

250

198

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