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    xavier121's Avatar
    xavier121 Posts: 1, Reputation: 1
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    #1

    Sep 2, 2009, 11:40 AM
    Balance Sheet Equation Computation Conflict



    How Can I solve for the unknowns?
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    Sep 2, 2009, 01:02 PM
    For A, either create a beginning-of-period balance sheet, or just use the "Accounting Identity" that Assets = Debt + Equity. Sufficient data has been provided for that.

    For B remember the ingredients of a basic P & L: Revenue minus Expenses = Net Income.

    C and D will follow from the effects that dividends, net income, and shareholder investment have on Retained Earnings and Paid-In Capital.

    Finally, you'll determine E at the end of the period just as you did for A, above.

    There's a few pretty good hints you can run with. If you're still hitting a wall, first review the forum's Homework Help rules, and then re-post, showing your progress at working it out. Cheers!
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