FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
9th Edition
ISBN: 9781119595724
Author: Kimmel
Publisher: WILEY C
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Compute the missing amounts on the company’s financial statements. (Hint: What’s the difference between the acid-test ratio and the current ratio?)16. Retained Earnings17. Total liabilities and stockholders' equity18. Total Assets19. Plant and equipment, net
The records of Fugazy Company show the following at December 31 , 2018:
E (Click the icon to view the data.)
Read the requirements.
Requirement 1. Compute the missing amount for Fugazy Company. You will need to determine Retained Earnings, December 31,2018, and total stockholders' equity, December 31,2018.
Begin by determining total stockholders' equity. Rework the accounting equation and then solve for stockholders' equity ("equity") at the beginning and end of the period.
Equity
Beginning
Ending
Data table
%3D
Assets & Liabilities:
Equity:
Beginning:
Common Stock
৪.000
Assets
$ 68,000 Dividends
10,000
Liabilities
41.000 Revenues
238.000
Ending:
Expenses
Retained Earnings, January 1,
Assets
$ 94.000 2018
19.000
Liabilities
55,000
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A) How much stockholders equity does diamondback have at the beginning of the current fiscal year?
B) Use the accounting equation and your answer to part (a) to show how you would calculate Diamondback's assets and liabilities at the beginning of the current fiscal year.
C) Summarize your findings.
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