1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
myrzilka [38]
3 years ago
12

Clark had no stock transactions in 2018​, so the change in​ stockholders' equity for 2018 was due to net income and dividends. I

f dividends were $ 55 comma 000​, how much was Clark​'s net income for 2018​? Use the accounting equation and the statement of retained earnings.
Business
1 answer:
liraira [26]3 years ago
6 0

Answer:

The question is not complete.

Here is the complete question:

Stockman Company had the following on the dates​ indicated:

                            12/31/18                   12/31/17

total assets         $540,000              $320,000

total liabilities          33,000             29,000

Stockman had no stock transactions in 2018​, so the change in​ stockholders' equity for 2018 was due to net income and dividends. If dividends were $65,000​, how much was Stockman​'s net income for 2018​? Use the accounting equation and the statement of retained earnings.

Here is the answer:

Explanation:

Accounting equation is given by :

Total Assets   = Total Liabilities  + Equity.

The first step is to determine the retained earnings at the beginning of the year:

                            As at 12/31/2017

Total Assets($)                                 =      Total Liabilities($)       Equity ($)

320,000                                                    29,000                    +   291,000(i)

i. The balancing figure amounts to retained earnings at the beginning of the year: $291,000.

To determine the net income for the current year, find the closing balance value for one complete side of the accounting equation (asset)

Total Assets($)                                 =      Total Liabilities($)       Equity ($)

540,000                                                      33,000                +                         x

The missing figure x is made up of closing retained earnings for the period which consist of opening retained earnings plus net income minus dividend. And the value of closing retained earnings suppose to balance  off the other side of the equation = $540,000 - $33,000

                                                       = $507,000.

The balance of the closing retained earnings suppose to $507,000 in order to balance the other side.

It can be represented as follow:

= Opening retained earnings   + Net income   -  Dividend

$507,000 =  $291,000                               +   x                      -  $65,000

$507,000 = $291,000 -$65,000 + x

$507,000 = $226,000 + x

= $281,000

You might be interested in
How much money does a therapyst make an hour/ and how much would they make in a year
enot [183]
An hour = the average hourly pay for a Therapist in the United States is $28.33 an hour. While ZipRecruiter is seeing hourly wages as high as $52.40 and as low as $12.74, the majority of Therapist wages currently range between $20.91 (25th percentile) to $31.01 (75th percentile) across the United States.

a year = the median annual salary for clinical, counseling, and school psychologists was $85,340 per year, according to the Bureau of Labor Statistics. The lowest 10 percent of workers earned less than $44,040, and the highest 10 percent earned more than $129,310.
3 0
2 years ago
Read 2 more answers
The supply curve represents the _____ price at which a firm is willing to _____.
Harrizon [31]
<span>The supply curve represents the lowest price at which a firm is willing to accept. The supply curve shows the lowest price the producer is willing to accept for a unit of their product. Producers need to make sure they aren't losing money but selling their products to wholesalers to then sell to the consumer. The producer needs to make a profit off of their product as well. This is where the supply curve comes in, it allows the firm to set the lowest price they can accept when they sell their units off. </span>
8 0
3 years ago
What is the best example of a short-run adjustment?
k0ka [10]

Answer:

Short-run economics primarily affect price.

Explanation:

When demand decreases for any reason, prices go down in the short term. When demand spikes, prices go up. ... Long-run adjustments occur when sustained increases or decreases in demand cause a business to change its practices and can affect both price and the means of production.

8 0
3 years ago
Read 2 more answers
1. The minimum age to receive a Class C drivers license is<br> A. 15<br> B. 16<br> C. 18
insens350 [35]
You would need to be at least 18 years old to hold a valid Ontario licence
4 0
3 years ago
Read 2 more answers
When banks try to make their positioning strategies tangible through the ________ dimension, they make sure the exterior and int
Andru [333]

Answer:

Place

Explanation:

When banks try to make their positioning strategies tangible through the <u>Place</u> dimension, they make sure the exterior and interior have clean lines, the layout of the desks and the traffic flow are planned carefully, and waiting lines are not overly long.

Positioning strategies: It is a strategy that choose one or two key area to focus on for brand and product growth in the market. Before implementing these strategies, it is important to understand the strength and weakness of the company, target customer need and competitor´s position in the market, it help in effective planning and achieve objective of the company.

There are several dimension to positioning strategies, depending on what kind of analysis firm want to conduct.

Here in the given case, Bank have used place dimension of positioning strategies, so that it can gain more customer attraction and keep service flow organized in the bank.

4 0
3 years ago
Other questions:
  • The residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2016, they spend a total of $250 fo
    8·1 answer
  • Framing Art Inc. will need to purchase two new cashier machines in 2 years, at a cost of $148 each. A savings account pays 2% pe
    8·1 answer
  • When a firm initiates a price​ decrease, it must seriously consider how competitors will react. although not all competitors are
    5·1 answer
  • Makers Corp. had additions to retained earnings for the year just ended of $285,000. The firm paid out $180,000 in cash dividend
    11·1 answer
  • How much must be deposited at the beginning of each year to accumulate to $25,000 in two years if interest is at 9%?
    15·1 answer
  • In case you have to complete an application on site, you want to make sure you have your completed Personal Fact Sheet.
    12·2 answers
  • Smithson, Inc. produces two types of gas grills: a family model and a deluxe model. Smithson’s controller has decided to use a p
    7·1 answer
  • is it right to kick someone out just because they are not on the lease and or had been evicted in the past? my step-mom recently
    5·2 answers
  • stock a has an expected return of 20%; stock b has an expected return of 5%, what is the ecpected return on a portfolio is compr
    14·1 answer
  • How is the market supply curve derived from the supply curves of individual producers?.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!