Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. below is the balance sheet for glucose control com

Below is the balance sheet for Glucose Control Company as of Dec. 31, 2019. The...

70.2K

Verified Solution

Question

Finance

Below is the balance sheet for Glucose Control Company as of Dec. 31, 2019. The company reported an annual net income of $88,000 for the following year, 2020, and did not change its assets or liabilities, unless otherwise noted.

Assets Liabilities and Equity
Cash 14,000 Accounts payable 16,000
Marketable securities 2,000 Notes payable 6,000
Accounts receivable 4,000 Current liabilities 22,000
Inventory 35,000 Long-term debt 95,000
Current assets 55,000 Total liabilities 117,000
Machines 34,000 Paid-in capital 20,000
Real estate 80,000 Retained earnings 32,000
Net fixed assets 114,000 Total equity 52,000
Total assets 169,000 Total liab. & equity 169,000

Part 1: If the company distributed its entire net income as dividends, what would be the value of total equity on Dec. 31, 2020?

Part 2: If the company distributed half of its net income as dividends and used the rest to invest in new machines, what would be the amount of Total equity on Dec. 31, 2020?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

During 2010, Salem Company spent $1,360,000 in research and development costs. As a result of its...

Accounting
Q

Why is just-in-time systems so popular?

Accounting
Q

Please draw the mitochondria and gram negative cell side by side. Include the labels below. Not...

Biology
Q

1) Is nuclear power relatively well understood? Please explain. 2) Is nuclear power proven hard to build...

Physics
Q

A +15.00 nC point charge with a mass of 4.00 g is placed 25.0 cm from...

Physics
Q

Based on the information below, create a project schedule (Gantt Chart). Assign tasks to either Workgroup...

General Management
Q

a B The potential energy due to two particles separated by distance r is U...

Physics
Q

be worth more or less (including zero) depending on your answer. Esmerelda rents a car...

Basic Math
Q

The figure shows the graphs of f f and f Identify each curve and explain...

Calculus
Q

Crane Corporation follows IFRS. Prior to 2022, the accounting income and taxable income for Crane...

Accounting
Q

Nozomi invested $32,000 cash and computer equipment worth $25,000 in the company in exchange for...

Accounting
Q

Required information The following information applies to the questions displayed below) Global Marine obtained a...

Accounting