can anyone help me with this problem I really dont have time to read cause calculus is taking up major time and I got a test in calculus on monday so I really dont feel like doing the chapter now and just wanted the answer to one problem.
Carlton company had assets of 280,000 and liabilities of 120,000 at the beginning of the year, and assets of 400,000 and liabilities of 140,000 at the end of the year. During the year, there was an investment of 40,000 in the business and the company paid dividents of 48,000. What amount of net income did the company earn during the year?
Thanks. If someone would tell me step by step how this is done I would appreciate it.
2006-09-16 12:08:26 · 1 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
can i ask why u added 40 k and subtracted 48 k instead of the other way around?
2006-09-16 12:24:43 · update #1
sorry I meant why did u add 48 and subtract 40 and not the other way around. God damn accounting is confusing I cant even type the numbers correctly
2006-09-16 12:25:51 · update #2
Need to find change in retained earnings for the income.
RE at beginning was 280k -120k = 160k RE
RE at end (basic) = 400k - 140k = 260k... keep in mind that 40k was added and 48k removed, so backtrack.
260k - 40k + 48k = 268k
Remove the beginning RE 268k - 160k = 108k earned.
2006-09-16 12:18:08 · answer #1 · answered by p_rutherford2003 5 · 0⤊ 0⤋