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Trava [24]
3 years ago
7

the baldwin Company currently has the following balances on their balance sheetTotal Assets $225,232 Total Liabilities136,748 Re

tained Earnings $36,493 Suppose next year the Baldwin Company generates $44,200 , pays $12,000 in , assets increase by $55,000, and total liabilities remain unchanged. What will ending Baldwins balance in Common Stock be next year
Business
1 answer:
Tanya [424]3 years ago
6 0

Answer:

see below

Explanation:

Common stock = Assets - Liabilities - Retained earnings

Assets next year = $225,232 + $55,000 = $280,232

Liabilities remain unchanged

Retained earnings = Opening retained earnings + Net income - Dividends

= $36,493 + $44,200 - $12,000

= $68,693

Common stock next year

= $280,232 - $136,748 - $68,693

= $74,791

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