LO 4 (Learning Objective 4: Solve for retained earnings and construct a balance sheet) Sullivan Corporation ended its fiscal year on September 30, 2018, with cash of $78 million, accounts receivable of $27 million, property and equipment of $27 million, and other long-term assets of $21 million. The company’s liabilities consist of accounts payable of $34 million and long-term notes payable of $17 million. Sullivan Corporation has total stockholders’ equity of $102 million; of this total, common stock is $31 million. Solve for the company’s ending retained earnings and then prepare Sullivan Corporation’s balance sheet at September 30, 2018. Use a proper heading on the balance sheet.
LO 4 (Learning Objective 4: Solve for retained earnings and construct a balance sheet) Sullivan Corporation ended its fiscal year on September 30, 2018, with cash of $78 million, accounts receivable of $27 million, property and equipment of $27 million, and other long-term assets of $21 million. The company’s liabilities consist of accounts payable of $34 million and long-term notes payable of $17 million. Sullivan Corporation has total stockholders’ equity of $102 million; of this total, common stock is $31 million. Solve for the company’s ending retained earnings and then prepare Sullivan Corporation’s balance sheet at September 30, 2018. Use a proper heading on the balance sheet.
Solution Summary: The author explains that the ending retained earnings of Corporation S are 71 million. The main elements of the balance sheet are assets, liabilities, and stockholders' equity.
(Learning Objective 4: Solve for retained earnings and construct a balance sheet) Sullivan Corporation ended its fiscal year on September 30, 2018, with cash of $78 million, accounts receivable of $27 million, property and equipment of $27 million, and other long-term assets of $21 million. The company’s liabilities consist of accounts payable of $34 million and long-term notes payable of $17 million. Sullivan Corporation has total stockholders’ equity of $102 million; of this total, common stock is $31 million. Solve for the company’s ending retained earnings and then prepare Sullivan Corporation’s balance sheet at September 30, 2018. Use a proper heading on the balance sheet.
Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.
(Learning Objectives 2, 3, 4: Reconstruct transactions from the financial statements)Parker Networking Solutions began operations on January 1, 2018, and immediately issuedits stock, receiving cash. Parker’s balance sheet at December 31, 2018, reported the followingstockholders’ equity:Common stock, $1 par...................... $ 59,000Additional paid-in capital.................. 473,500Retained earnings.............................. 40,000Treasury stock, 300 shares................ (3,600)Total stockholders’ equity............ $568,900During 2018, Parkera. issued stock for $9 per share.b. purchased 800 shares of treasury stock, paying $12 per share.c. resold some of the treasury stock.d. declared and paid cash dividends.
(Learning Objective 6: Analyze and evaluate liquidity and debt-paying ability) LO 6McClain Company’s condensed and adapted balance sheet at December 31, 2018, follows:(In millions)Total current assets....................................................... $15.9Property, plant, equipment, and other assets................. 16.2$32.1Total current liabilities.................................................. $ 9.6Total long-term liabilities.............................................. 5.5Total shareholders’ equity............................................. 17.0$32.1Assume that during the first quarter of the following year, 2019, McClain completed the following transactions:a. Earned revenue of $2.8 million, on account.b. Borrowed $7.0 million in long-term debt.c. Paid half of the current liabilities.d. Paid selling expense of $0.6 million.e. Accrued general expense of $0.8 million. Credit General Expense Payable, a currentliability.f. Purchased equipment for $4.6 million, paying cash…
S3-1. (Learning Objective 1: Explain how accrual accounting differs from cash-basisaccounting) Southeast Corporation made sales of $950 million during 2018. Of this amount,Southeast collected cash for $876 million. The company’s cost of goods sold was $260 million,and all other expenses for the year totaled $275 million. Also during 2018, Southeast paid $410million for its inventory and $250 million for everything else. Beginning cash was $75 million.a. How much was Southeast’s net income for 2018?b. How much was Southeast’s cash balance at the end of 2018?
Chapter 1 Solutions
Financial Accounting Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
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