Essay Chapter 2 Solutions

7494 Words Sep 4th, 2013 30 Pages
CHAPTER 2

The Financial Statements

BRIEF EXERCISES

BE2–1

2008

2008 2008 Beginning Ending Retained 2008 2008 2008 Retained Earnings + Revenues – Expenses – Dividends = Earnings

$28.2 + $43.3 – $38.2 – X = $30.6

X = $2.7

2008 Dividends as a percentage of 2008 net income:

2008 Dividends = $ 2.7 = 52.9% 2008 Net income ($43.3-$38.2) $ 5.1

BE2–2

1) Current Liabilities financed $32 billion of the assets. Current Liabilities divided by Total assets = $32/$59 = 54.2%

2) Long-term debt financed $18 billion of the assets. Long-term debt divided by total assets = $18/$59 = 30.5%

3) Stockholders’ equity financed $9 billion
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Balance sheet g. Balance sheet m. Balance sheet
b. Income statement h. Balance sheet n. Balance sheet
c. Balance sheet i. Balance sheet o. Balance sheet
d. Income statement j. Balance sheet p. Income statement
e. Balance sheet k. Income statement q. Balance sheet
f. Income statement l. Income statement r. Balance sheet

E2–4

1. Statement of Stockholders’ Equity (Retained Earnings); Statement of Cash Flow, Income Statement
2. Income Statement
3. Balance Sheet

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