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bearhunter [10]
3 years ago
6

Andrews Company currently has the following balances in their liability and equity accounts: Total Liabilities: $52,319,000 Comm

on Stock: $8,808,000 Retained Earnings: $45,066,000 Next year the Andrews Company generates $11,500,000 in Net Profit, pays $5,000,000 in dividends, and total liabilities and common stock remain unchanged. What will their total assets be next year
Business
1 answer:
Dovator [93]3 years ago
7 0

Answer: $112,693,000

Explanation:

Total assets = Equity + Liabilities

Liabilities will not change in the new year.

Retained earnings = Beginning retained earnings + Net income - Dividends

= 45,066,000 + 11,500,000 - 5,000,000

= $51,566,000

Assets = (8,808,000 + 51,566,000) + 52,319,000

= $112,693,000

Note: Equity is the sum of common stock and retained earnings

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When something is vague, it is not being specific but when something is ambiguous, it has multiple meanings and so can be open to interpretation.

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8 0
3 years ago
What are new guidelines issued by GAAP for consolidating entities
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s344n2d4d5 [400]

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The correct answer is have a low value-to-weight ratio.

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Products that have low weight-value ratios (for example, coal, iron ore, bauxite and sand) also have low storage costs but high movement costs as a percentage of their sales price. Inventory management costs are calculated as a ration of the value of the product. Low product value means low storage cost, since inventory management costs are the dominant factor in storage cost. When the value of the product is low, transport costs represent a high proportion of the sale price.

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4 years ago
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