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 break this down step by step.
1. Income Statement Calculation
We know:
- Total Revenue = $32,500
- Salaries Expense = $4,700
- Utilities Expense = $2,700
Net Income = Total Revenue – Total Expenses
Total Expenses = Salaries Expense + Utilities Expense
Total Expenses = $4,700 + $2,700 = $7,400
Net Income = $32,500 – $7,400 = $25,100
2. Statement of Stockholders’ Equity Calculation
We are given:
- Beginning Retained Earnings = $8,700
- Stock Issuances = $1,100
- Beginning Total Stockholders’ Equity = $14,400
We add net income to retained earnings:
Ending Retained Earnings = Beginning Retained Earnings + Net Income
Ending Retained Earnings = $8,700 + $25,100 = $33,800
Now, total stockholders’ equity:
Total Stockholders’ Equity = Ending Retained Earnings + Stock Issuances
Total Stockholders’ Equity = $33,800 + $5,700 + $1,100 = $40,600
Explanation
The Income Statement helps in determining profitability by subtracting expenses from revenue. Here, revenue is $32,500, and total expenses are $7,400, leaving a net income of $25,100.
The Statement of Stockholders’ Equity tracks changes in equity. We start with $8,700 in retained earnings, add $25,100 net income, and include $1,100 stock issuance, giving total equity of $40,600.
This analysis shows how net income affects company valuation and financial health.
Final Financial Statements
Income Statement
Revenue: $32,500
Expenses:
- Salaries: $4,700
- Utilities: $2,700
Total Expenses: $7,400
Net Income: $25,100
Statement of Stockholders’ Equity
Beginning Retained Earnings: $8,700
Add: Net Income: $25,100
Ending Retained Earnings: $33,800
Stock Issuances: $1,100
Total Stockholders’ Equity: $40,600
Now, I’ll generate an image with these results.
Here is the financial statement for Bulldog, Inc., displaying the Income Statement and the Statement of Stockholders’ Equity. Let me know if you need any modifications or further explanations!
