Answer:
Explanation:
To calculate equity
Total assets
2016 2017
Cash 64,300 15,640
Accounts receivable 26,240 19,100
Office supplies 3,160 1,960
Office equipment 44,000 44,000
Trucks 148,000 157,000
Building 80,000
Land 60,000
Total 285,700 377,700
Total liabilities
Accounts payable 3,500 33,500
Notes payable 40,000
Total 3,500 73,500
Total equity = Total assets = Total liabilities
2016 = ( 285700-3500)= 282,200
2017 = (377,700 - 73,500) 304,200
Net income for 2017
Total equity = 304,200
Less additional cash invested (35,000)
Add back dividends paid 19,000
288,200
Less total equity for 2016 (282,200)
6,000
