Below are the 2012 and 2013 year-end balance sheets for Big Bang Enterprises.  Use this Balance Sheet to answer questions 1, 2, 3 and 4.

 

Assets:	2013		2012
Cash	$  200,000		$   170,000
Accounts receivable	864,000		700,000
Inventories	2,000,000		1,400,000
Total current assets	$3,064,000		$2,270,000
Net fixed assets	6,000,000		5,600,000
Total Fixed Assets	6.000.000		5.600.000
Total assets	$9,064,000		$7,870,000
Liabilities and equity:Accounts payable	$1,400,000		$1,090,000
Notes payable to bank	1,600,000		1,800,000
Total current liabilities	$3,000,000		$2,890,000
Long-term debt	2,400,000		2,400,000
Total Liabilities	5,400,000		5,290,000
Common stock	3,000,000		2,000,000
Retained earnings	664,000		580,000
Total common equity	$3,664,000		$2,580,000
Total liabilities and equity	$9,064,000		$7,870,000

 

 What could have happened that made the Common Stock balance for Big Bang increase by $1,000,000?

 What if instead the Common Stock balance for Big Bang decreased by $1,000,000?  What would have happened?

 What is the Net Working Capital for Big Bang in 2013?  Show the entire calculation for credit.

 

1. For Big Bang fill in the Accounting Equation for 2013.  

 Assets _____________ = Liabilities _____________ + Equity _____________

1.  
2. 
   
3.  On 12/31/13, Bunratty Industries reported retained earnings of $800,000 on its balance sheet, and it reported that it had $400,000 of net income during the year. On its previous balance sheet, at 12/31/12, the company had reported $500,000 of retained earnings. No shares were repurchased during 2013. How much in dividends did the firm pay during 2013?   Show the entire calculation for credit.)?

  Revenues (aka Sales) minus Expenses equals what?

 We can see Net Income on the Income Statement.  What other financial statements will show us Net Income?

Answer rating: 100% (QA)

SOLUTION To make the Common Stock balance for Big Bang increase by 1000000 the company could have issued additional common stock Common stock represen... View the full answer