5) Sooner Company has had a net income of $6,100, $3,600, $10,000, and $9,900 ov

Question

5) Sooner Company has had a net income of $6,100, $3,600, $10,000, and $9,900 over the first four years of the company's existence. If the average annual amount of dividends paid over the last four years is $2,400, What is the ending retained earnings balance?

6) On January 1, 2012, Gucci Brothers Inc. started the year with a $492,000 balance in retained earnings and a $604,000 balance in common stock. During 2012, the company earned net income of $107,000, paid a dividend of $15,000, and issued more common stock for $23,500. What is total stockholders' equity on December 31, 2012?

7) Use the following appropriate amounts to calculate net income: Revenue, $11,700; Liabilities, $4,700; Expenses, $4,800; Assets, $17,600; Dividends, $1,900.

Explanation / Answer

5.) Ending retained earnings is $20,000 I didn't see the $9,900 earlier, sorry. 6.) Stockholder Equity is $1,210,500 $492,000 RE + $604,000 Stock = $1,096,000 equity at the beginning of the year Add 106,000 income subtract 15,000 dividends Add 23,500 for more stock Ending balance is $1,210,500

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