At the end of the current period, Maltese, Inc. reports the following amounts: Assets = $52,300; Liabilities = $21,100; Dividends = $5,810; Revenues = $20,100; Expenses = $13,600. Calculate net income and stockholders' equity at the end of the period.

Question

Business

Jan Patel

1 October, 11:59

At the end of the current period, Maltese, Inc. reports the following amounts: Assets = $52,300; Liabilities = $21,100; Dividends = $5,810; Revenues = $20,100; Expenses = $13,600. Calculate net income and stockholders' equity at the end of the period.

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Ramsey · Answer 1

SE = 30,510

Explanation:

We are going to use the accounting equation to solve for SE:

Assets = Liablities + Equity

Assets = Liab + SE + net income - dividends

First we have to solve for net income:

20,100 Revenues - 13,600 expenses = 6,500 net income

Now we can post the know value in the formula an solve for Stockholders equity:

52,300 = 21,100 + SE + 6,500 - 5,810

SE = 52,300 - 21,1000 + 6,500 + 5,810

SE = 30,510