Earth's Best Company has sales of $200,000, Cost of Goods Sold of 100,000, a net income of
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Question:
Earth's Best Company has sales of $200,000, Cost of Goods Sold of 100,000, a net income of $30,000, and the following balance sheet:
Cash $20,000
Accounts payable $40,000
Receivables 50,000
Other current liabilities 40,000
Inventories 150,000
Long-term debt 60,000
Net fixed assets 90,000
Common equity 170,000
Total assets $310,000
Total liabilities and equity $310,000
Assume that next year the firm again has net income of $30,000 pays a $10,000 dividend to shareholders, does not repurchase any stock, does not issue any stock, and makes a capital investment of $10,000 to buy some additional equipment. Next year, Common Equity will be what?
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