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I need help with the very last question. thanks Effect of net income on a firm's balance sheet Conrad Air, Inc., reported net income of
I need help with the very last question. thanks
Effect of net income on a firm's balance sheet Conrad Air, Inc., reported net income of $1,372,000 for the year ended December 31,2020. Show how Conrad's balance sheet would change from 2019 to 2020 depending on how Conrad "spent" those earnings as described in the scenarios that appear below. a. Conrad paid no dividends during the year and invested the funds in marketable securities. b. Conrad paid dividends totaling $495,000 and used the balance of the net income to retire (pay off) long-term debt. c. Conrad paid dividends totaling $495,000 and invested the balance of the net income in building a new hangar. d. Conrad paid out all $1,372,000 as dividends to its stockholders. a. If Conrad paid no dividends during the year and invested the funds in marketable securities, the amount transferred to the balance sheet will be 1372000. The ending marketable securities will be $ 1409000. The ending retained earnings will be $ 2957000. b. If Conrad paid dividends totaling $495,000 and used the balance of the net income to retire (pay off) long-term debt, the amount transferred to the balance sheet will be $ 877000 The ending long-term debt will be $ 1823000. The ending retained earnings will be $ 2462000. c. If Conrad paid dividends totaling $495,000 and invested the balance of the net income in building a new hangar, the amount transferred to the balance sheet will be $ 877000. The ending buildings will be $ 2484000. The ending retained earnings will be $ 2462000. d. If Conrad paid out all $1,372,000 as dividends to its stockholders, the amount transferred to the balance sheet will be $ 0 The ending retained earnings will be $ nothing 1 Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Conrad Air, Inc. Balance Sheet as of December 31, 2019 Assets Cash Marketable securities Accounts receivable Inventories Current assets Equipment Buildings Fixed assets Total assets $119,000 37,000 43,000 129,000 $328,000 $2,970,000 1,607,000 $4,577,000 $4,905,000 Liabilities and Stockholders' Equity Accounts payable Short-term notes Current liabilities Long-term debt Total liabilities Common stock Retained earnings Stockholders' equity Total liabilities and equity $67,000 56,000 $123,000 $2,700,000 $2,823,000 $497,000 1,585,000 $2,082,000 $4,905,000 Print Done
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