Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

M1-13 Relationships among Financial Statements [LO 1-2) ltems from the income st

ID: 2330750 • Letter: M

Question

M1-13 Relationships among Financial Statements [LO 1-2) ltems from the income statement, statement of retained earnings, and balance sheet are listed below in alphabetical order. For the companies shown in each column, solve for the missing amounts. Answer is complete but not entirely correct. Kealy Cor Weil Inc Simon Inc 10 S 19 S Common Stock Dividends Net Income Retained Earnings, Beginning of 18 Year Retained Earnings, End of Year Total Assets Total Expenses Total Liabilities Total Revenues 15 C 20 35 73 52 28 67 10 21 31 63 21 13 31 12 27 39 71 34 14 46

Explanation / Answer

Retained earnings at end of year=Retained earnings at beginning of year+Net income-Dividends

Total revenue-Total expenses=Net income

Common stock+Retained earnings at end of year=Total equity

Total assets=Total equity+Total liabilities

Hence for Kealy Corp:

Ending retained earnings=(27+12-2)=$37

Total equity=(18+37)=$55

Hence total assets=(55+14)=$69