Three different companies--A, B, and C--have the same balance sheet at the begin
ID: 2478606 • Letter: T
Question
Three different companies--A, B, and C--have the same balance sheet at the beginning and the end of a year. These are
summarized below:
Given the data above and the additional information for each company below, determine the net income (loss) for each company.
Total Assets Total Liabilities
Beginning of the year $ 500,000 $250,000
End of the year $1,200,000 $350,000
Company A No additional investment was made by stockholders, and no dividends were paid.
Company B Stockholders invested an additional $200,000, and no dividends were paid.
Company C Stockholders invested $450,000, and dividends of $50,000 were paid.
Explanation / Answer
Company A Net income $600,000
Company B Net income $400,000
Company C Net income $200,000
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