Answer to Question #242587 in Finance for Lady

Question

The following items are taken from the adjusted trial balance (assume normal balances) of the Dinkel Company for the year ending December 31, 2022. On a separate piece of paper, answer the following questions

Answer 1

1) What is Net Income for the year?

2) What is Ending Retained Earnings (12/31/16)?

3) What are Total Current Assets?

4) What is the Book Value of the Equipment?

5) What type of asset is the Patent account?

6) What are Total Assets?

7) What are Total Current Liabilities?

8) What are Total Long-term Liabilities?

9) What are Total Liabilities?

10) What is Ending Stockholder Equity (12/31/16)?

Answer:

1. Net Income for the year is $ 23,000.

2. Ending Retained Earnings are $ 85,000.

3. Total Current assets are $ 33,000

4. Book Value of equipment is $ 204,000.

5. Patent is a non-current asset (Intangible asset-Fixed Asset).

6. Total assets are $ 257,000.

7. Total Current Liabilities are $ 37,000.

8. Total Non-Current Liabilities are $ 80,000.

9. Total liabilities are $ 117,000.

10. Ending equity is $ 140,000.