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1. ExxonMobil reports total assets of $228 billion and total liabilities of $107 billion. What is the amount of stockholders’ equity?
2. Citigroup reports total liabilities of $1,500 billion and stockholders’ equity of $110 billion. What is the amount of total assets?
3. Amazon.com reports total assets of $4.7 billion and total stockholders’ equity of $0.3 billion. What is the amount of total liabilities?
4. Nike reports an increase in assets of $1.2 billion and an increase in liabilities of $0.3 billion. What is the amount of the change in stockholders’ equity?
5. Kellogg reports a decrease in liabilities of $0.34 billion and an increase in stockholders’ equity of S0.02 billion. What is the amount of the change in total assets?
Required:
Calculate the answer to each.
1.
Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.
To determine: The amount of stockholders’ equity of Company CC.
Answer to Problem 1.16E
The amount of stockholders’ equity of Company EM is $121 billion.
Explanation of Solution
Balance Sheet:
Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:
Determine the amount of stockholders’ equity.
Given:
Total assets is $228 billion and total liabilities is $107 billion.
Hence, stockholders’ equity of Company EM is $121 billion.
2.
Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.
To determine: The amount of total assets of Company C.
Answer to Problem 1.16E
The total assets of Company C is $1,610 billion.
Explanation of Solution
Balance Sheet:
Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:
Determine the amount of total assets.
Given:
Total liabilities is $1,500 billion and stockholders’ equity is $110 billion.
Hence, the total assets of Company C $1,610 billion.
3.
Liability: Liabilities include the claims of the creditors on the assets of the business. The liability is the obligation of the business.
To determine: The amount of total liabilities of Company A.
Answer to Problem 1.16E
The total liabilities of Company A is $4.4 billion.
Explanation of Solution
Balance Sheet:
Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:
Determine the amount of dividend paid during the year.
Given:
Total assets is $4.7 billion and stockholders’ equity is $0.3 billion.
Hence, total liabilities of Company A is $4.4 billion
4.
Stockholders’ Equity: Stockholders Equity refers to the right the owner possesses over the resources of the business. Common stock and the retained earnings are the components of the Stockholders Equity.
To determine: The amount of change in stockholders equity of Company N.
Answer to Problem 1.16E
The amount of change in stockholders equity of Company N is $0.9 billion.
Explanation of Solution
Balance Sheet:
Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:
Given:
Increase in assets is $1.2 billion and increase in liabilities is $0.3 billion.
Determine the amount of change in stockholders equity.
Hence, the change in stockholders equity of Company N is $0.9 billion.
5.
Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.
To determine: The amount of change in total assets of Company K.
Answer to Problem 1.16E
The change in total assets of Company K is decreased by $0.32 billion.
Explanation of Solution
Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business. The financial position can be summarized by the accounting equation:
Given:
Decrease in liabilities is $0.34 billion and increase in stockholders’ equity is $0.02 billion.
Determine the amount of total assets.
Hence, the total assets of Company K is decreased by $0.32 billion.
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Chapter 1 Solutions
FINANCIAL ACCOUNTINGLL W/CONNECT >IC<
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- Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning