P2.4 Understanding the accounting equation (LO 2-12) The following is selected information from Bob Touret. Inc.'s financial statements. Solve for the missing amounts for each of the five years. You may have to use some numbers from the year before or the year after to solve for certain current year numbers. (NA = not available.) Year 20X1 20x2 20x3 20X4 20X5 Current assets (CA) S2,736 L 52.778 X Noncurrent assets $4,002 F $3,900 R $4.805 Total assets 6,748 G M 7,008 Y Current liabilities (CL) 1.536 H N S 1.463 Noncurrent liabilities B 2.345 0 2.206 2.252 Contributed capital 1.250 1 P 1.300 Z Retained earnings (ending) 1.750 J 1.756 T 1.924 Total stockholders' equity 3.091 U AA Total liabilities and stockholders' equity D K 6,916 7,008 BB Working capital (CA - CL) E 935 1.331 V 771 Net income (loss) NA 105 0 SS 135 Dividends NA 14 9 w 12 3.056 Comments: 1. The definitional equation for the balance sheet is: Total Assets - Total Liabilities + Total Shareholders' equity 2. The Total Shareholders' equity is, broadly speaking, Contributed Capital (what the shareholders put in) and Retained Earning (the profits made and still in the company Total Shareholders' equity = Contributed Capital - Retained Earnings 3. Retained Eamings carries over from year to year, so that Retained Earrings beginning) + Net Income - Dividends - Retained Earnings (ending) The implication of 3. For Tis this: T + Net Income - Dividends = Retained Earnings (ending) T+135 = 1,924 - 12