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Magee Corporation provided the following summary balance sheet information: Dec. 31, 20X1 Dec. 31, 20X2 Total assets $1,500,000 $2,300,000 Total liabilities 700,000 1,400,000 Compute net
Magee Corporation provided the following summary balance sheet information: | |||||||
Dec. 31, 20X1 | Dec. 31, 20X2 | ||||||
Total assets | $1,500,000 | $2,300,000 | |||||
Total liabilities | 700,000 | 1,400,000 | |||||
Compute net income for the year ending December 31, 20X2, under each of the following independent scenarios: | |||||||
(a) | Magee paid no dividends, and no additional capital was raised via share issuances. | ||||||
(b) | Magee paid $100,000 in dividends, and no additional capital was raised via share issuances. | ||||||
(c) | Magee paid no dividends, but raised $250,000 via issuances of additional shares of stock. | ||||||
(d) | Magee paid $100,000 in dividends, and raised $250,000 via issuances of additional shares of stock. | ||||||
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