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eBook Show Me How Net Income and Stockholders' Equity for Four Businesses Four different corporations, Amber, Blue, Coral, and Daffodil, show the same balance sheet
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eBook
Show Me How
Net Income and Stockholders' Equity for Four Businesses
Four different corporations, Amber, Blue, Coral, and Daffodil, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders' equity, are summarized as follows:
Total Assets Total Liabilities Beginning of the year $1,220,000 $990,000 End of the year 1,730,000 1,150,000
On the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year.
(Hint: First, determine the amount of increase or decrease in stockholders' equity during the year.)
Amber: No additional common stock was issued and no dividends were paid. Blue: No additional common stock was issued, but dividends of $60,000 were paid. Coral: Additional common stock of $140,000 was issued, but no dividends were paid. Daffodil: Additional common stock of $140,000 was issued and dividends of $60,000 were paid.
Amber $ _________ Blue $__________ Coral $__________ Daffodil $__________
eBook
Show Me How
Net Income and Stockholders' Equity for Four Businesses
Four different corporations, Amber, Blue, Coral, and Daffodil, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders' equity, are summarized as follows:
| Total Assets | Total Liabilities | |||
| Beginning of the year | $1,220,000 | $990,000 | ||
| End of the year | 1,730,000 | 1,150,000 | ||
On the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year.
(Hint: First, determine the amount of increase or decrease in stockholders' equity during the year.)
| Amber: | No additional common stock was issued and no dividends were paid. |
| Blue: | No additional common stock was issued, but dividends of $60,000 were paid. |
| Coral: | Additional common stock of $140,000 was issued, but no dividends were paid. |
| Daffodil: | Additional common stock of $140,000 was issued and dividends of $60,000 were paid. |
| Amber | $ _________ | |
| Blue | $__________ | |
| Coral | $__________ | |
| Daffodil | $__________ |
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