Below Are Incomplete Financial Statements For Buldog, Inc Required: Calculate The Missing Amounts. BULLDOG, INC Income Statement S 32,500 Expenses: Salaries 4,700 2,700 Utilities Net Income BULLDOG, INC. Statement Of Stockholders' Equity Retained Stockholders Total Stock Earnings Equity Beginning Balance8,700 5,70014,400 1,100 1,100 Issuances Add: Net Income
The correct answer and explanation is:
Let’s calculate the missing amounts step by step.
Income Statement
Revenue = $32,500
- Salaries Expense = $4,700
- Utilities Expense = $2,700
- Net Income = Revenue – Total Expenses
Net Income = $32,500 – ($4,700 + $2,700) = $32,500 – $7,400 = $25,100
Statement of Stockholders’ Equity
- Beginning Retained Earnings = $8,700
- Beginning Stockholders’ Equity = $14,400
- Stock Issuances = $1,100
- Net Income = $25,100
- Ending Retained Earnings = $8,700 + $25,100 = $33,800
- Ending Stockholders’ Equity = Beginning Stockholders’ Equity + Stock Issuances + Net Income
Ending Stockholders’ Equity = $14,400 + $1,100 + $25,100 = $40,600
Explanation
The missing amounts were calculated using fundamental financial principles:
- Net Income Calculation:
The net income is derived by subtracting total expenses from total revenue. Here, the total expenses include salaries and utilities, which sum to $7,400. Subtracting this from $32,500 results in a net income of $25,100. - Retained Earnings & Stockholders’ Equity:
Retained earnings begin at $8,700. After adding net income of $25,100, retained earnings grow to $33,800. Since stock issuances increase total stockholders’ equity, we add the issued stock value of $1,100 to the total. - Final Stockholders’ Equity Calculation:
The final stockholders’ equity considers the beginning balance of $14,400, additional stock issuances of $1,100, and the net income of $25,100, leading to an ending stockholders’ equity of $40,600.
This approach ensures an accurate and clear financial analysis, essential for business evaluation and decision-making.
Now, let’s generate an image representing these financial calculations.
Here is the financial report image for Bulldog, Inc., showing the income statement and stockholders’ equity statement with all calculations. Let me know if you need any modifications or explanations!
