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The Baldwin Company currently has the following balances on their balance sheet: Total Assets $167,705 Total Liabilities $69,461 Retained Earnings $88,498 Suppose next year the Baldwin Company generates $44,200 in net profit, pays $12,000 in dividends, total assets increase by $55,000, and total liabilities remain unchanged. What will ending Baldwins balance in Common Stock be next year

Sagot :

ogorwyne

The common stock next year would be $32546

The total assets (current) =  $167,705

Total assets (next year) = $167,705 +  $55,000 = $222705

The total liabilities (current)=  $69,461

The total liabilities (next year)=  $69,461

The total retained earnings (current) = $88,498

The total retained earnings (next year) = $88,498 + 44,200 - $12000 = $120698

Common stock (current)

=  $167,705 - $69,461-$88,498

= $9746

Common stock (next year)

= $222705 - $69,461 - $120698

= $32546

The common stock next year would be $32546

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