The Baldwin company currently has the following balances on their balance sheet: Assets $180,090 Common Stock $12,907 Retained earnings $92,633 Suppose next year the Baldwin Company generates $20,000 in net profit, pays $10,000 in dividends, assets change to $151,000, and common stock remains unchanged. What must their total liabilities be next year?

Answer rating: 100% (QA)

We can solve this problem by using the concept of the accounting equation Assets Liabilities Shareho... View the full answer