Betancourt International has operations in Arrakis. The balance sheet for this d

Question

Betancourt International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 28,000 solaris, debt in the amount of 10,000 solaris, and equity of 18,000 solaris. Assume the equity increases by 1,900 solaris due to retained earnings.

Betancourt International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 28,000 solaris, debt in the amount of 10,000 solaris, and equity of 18,000 solaris. Assume the equity increases by 1,900 solaris due to retained earnings.

Explanation / Answer

Balance Sheet (dollars) Assets Liabilities Asssts =28000/1.32 21212.12   Debt 10000/1.32 7575.76 increase in asset 1900/1.32 1439.39   Equity(18000+1900)/1.32 15075.76      Assets 22651.52   Total debt & equity 22651.52

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