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1. Revenues = $27,000; Expenses = $18,000; Net income = ____________. 2. Increase in stockholders' equity = $17,000; Issuance of common stock = $11,000; Net income = $12,000; Dividends = ____________. 3. Assets = $24,000; Stockholders' equity = $15,000; Liabilities = ____________. 4. Total change in cash = $26,000; Net operating cash flows = $34,000; Net investing cash flows = ($17,000); Net financing cash flows = ____________.

Respuesta :

Answer:

1. $9,000

2. $6,000

3. $9,000

4. -$25,000

Explanation:

Here, we are expected to calculate values for the terms using the values in the preceding term for each question;

1. Net Income

Mathematically, net income = Revenues - Expenses = 27,000 - 18,000 = $9,000

2. Dividends

Mathematically;

Change in stock holder’s equity = Issuance of common stock + Net Income - Dividends

Hence;

Dividends = Net Income + Issuance of Common Stock - Dividends

Dividends = 12,000 + 11,000 - 17,000 = 23,000 -17,000 = $6,000

3. Assets

Mathematically ;

Assets = Liabilities + Stockholder’s Equity

Thus;

Liabilities = Assets - Stockholder’s Equity

Liabilities = 24,000 -15,000 = $9,000

4. Net Operating Cash Flows;

Mathematically;

Net Financing cash flows = Total change in cash - ( Net operating cash flows + Net Investing Cash flows)

Net Financing cash flows = $26,000 - (34,000 + 17,000)

Net financing cash flows = 26,000 - 17,000 -34,000 = -$25,000

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