Chapter 1: 1-4PSB (page 43)
Use the information in Problem 1-3B to prepare a year-end statement of retained earnings for Audi Company.
Retained earnings are the accumulated profit and net income is$1,200
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Use the information in Exercise 1-15 to prepare an October 31 balance sheet for Ernst Consulting. Hint: The solution to Exercise 1-16 can help.
The following financial statement information is from five separate companies.
Company Company Company Company Company
V W X Y Z
December 31, 2016
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . \(54,000 \) 80,000 \(141,500 \)92,500 $144,000
Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 25,000 60,000 68,500 51,500 ?
December 31, 2017
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,000 100,000 186,500 ? 170,000
Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 36,000 ? 65,800 42,000 42,000
During year 2017
Stock issuances . . . . . . . . . . . . . . . . . . . 5,000 20,000 ? 48,100 60,000
Net income (or loss) . . . . . . . . . . . . . . . . ? 40,000 18,500 24,000 32,000
Cash dividends . . . . . . . . . . . . . . . . . . . 5,500 2,000 0 20,000 8,000
Required 5. Compute the amount of liabilities for Company Z on December 31, 2016
Question: Describe the internal role of accounting for organizations
Answer the following questions. (Hint: Use the accounting equation.)
a. At the beginning of the year, Addison Company’s assets are \(300,000 and its equity is \)100,000. During the year, assets increase \(80,000 and liabilities increase \)50,000. What is the equity at year-end?
b. Office Store has assets equal to \(123,000 and liabilities equal to \)47,000 at year-end. What is the equity for Office Store at year-end?
c. At the beginning of the year, Quaker Company’s liabilities equal \(70,000. During the year, assets increase by \)60,000, and at year-end assets equal \(190,000. Liabilities decrease \)5,000 during the year. What are the beginning and ending amounts of equity
Key financial figures for Apple’s fiscal year ended September 26, 2015, follow.
Key Figure \( Millions
Liabilities + Equity . . . . . . . . . . . \)290,479
Net income . . . . . . . . . . . . . . . . . 53,394
Revenues . . . . . . . . . . . . . . . . . . 233,715
Required 2. What is Apple’s return on assets for fiscal year 2015? Its assets at September 27, 2014, equal $231,839 (in millions).
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