Answer:
i think answer B is right
but i am not sure
Craigmont Company's direct materials costs are $3,400,000, its direct labor costs total $7,360,000, and its factory overhead costs total $5,360,000. Its conversion costs total:__________
a) $10,760,000.
b) $8,760,000.
c) $12,720,000.
d) $5,400,000.
e) $16,120,000.
Answer:
c) $12,720,000.
Explanation:
Conversion Costs = Direct Labor Costs + Factory Overheads
= $7,360,000 + $5,360,000
= $12,720,000
Thus,
Craigmont Company's conversion costs total is $12,720,000.
A journal entry for a payment for rent expense was posted as a debit to Salaries Expense and a credit to Cash. Which of the following statements correctly states the effect of the error on the trialâ balance?
A. The sum of the credits will equal the sum of the debits.
B. The sum of the debits will exceed the sum of the credits by .
C. The sum of the debits will exceed the sum of the credits by .
D. The sum of the credits will exceed the sum of the debits by .
Answer:
A). The sum of the credits will equal the sum of the debits.
Explanation:
journal entry journal entry can be regarded as record of the business transactions which is made in a accountingbooks of a business.
journal entry that is documented properly will contains correct date as well as amounts to be debited and description of the transaction, it contain amount to be credited as well as a unique reference number.Note that "There is equal amount of credit as well as debit in a journal entry"
Trial balance can be regarded as report that give lists of balances of all general ledger accounts in a firm at a particular point in time, there is compilation of all ledger balance into debit as well as credit account column totals. As rule in trial balance, the total of the debit balances as well as credit balances that is been extracted from the ledger must tally with each other.
TCost-908 Car Mechanic Inc. uses a job-order costing system. The company applies all of its overhead costs to jobs using a predetermined overhead rate based on direct labor-hours. At the beginning of the year, it made the following estimates: Direct labor-hours required to support estimated output 22,000 Fixed overhead cost $ 253,000 Variable overhead cost per direct labor-hour $ 1.00 During the year, a customer brought in her car for repairs. The following information was available with respect to the car's repairs: Direct materials $ 703 Direct labor cost $ 317 Direct labor-hours used 8 If TCost-908 sets its selling prices by adding a markup percentage of 40% of its total job cost, then how much would the company have charged this customer for her car's repairs?
Solution :
1. Predetermined overhead rate
Fixed [tex]\text{overhead cost}[/tex] (253,000 / 22,000) = $ 11.5
Variable [tex]\text{overhead cost}[/tex] per direct labor-hour = $ 1
Predetermined overhead rate = $12.5
2. Total job cost $
Direct materials 703
Direct labor cost 317
Applied overhead (8 hours x $12.5 per direct labor hour) = 100
Total job cost = $ 1120
3. Charges = $ 1120 x 140%
= $1568
Expert Lawn Services offers customers a reduced price for lawn care if they pay for 6 months service in advance. In March 2020, 50 customers prepay $540 each for services to be provided from April through September. Expert recognizes revenue proportionately over the 6-month period. What is Expert's unearned revenue liability as of April 30
Answer:
the total unearned revenue be $22,500.
Explanation:
The computation of the unearned revenue liability is given below:
advance paid 540.00
Divided by tenure of services months 6.00
revenue to be recognized per month 90.00
Now unearned revenue for 30 april i.e. for five months 450.00
Multiply by no of customers 50.00
So, the total unearned revenue be $22,500.
Unearned Revenue liability refers to the amount received in advance for the services or product that has yet to be provided to the customers. The unearned revenue liability is $22,500.
What is revenue?
Revenue refers to the inflows of cash in a company by operating normal business activities. Net income is calculated by deducting costs from the revenues.
The expert's unearned revenue liability is calculated as follows:
[tex]\begin{aligned}\text{Total revenue}&= \text{No. of customer }\times\text{ amount paid by each customer}\\&=50 \times \$540\\&=\$27,000\end{aligned}[/tex]
Revenue for the month of April is $27,000 divided by 6 months= $4,500
Unearned revenue liability is
[tex]\begin{aligned}\text{Unearned revenue liability}&= \text{Total Revenues }-\text{ Revenue earned for april}\\&=\$27,000 - \$4,500\\&=\$22,500\end{aligned}[/tex]
Therefore, the unearned revenue liability is $22,500.
Learn more about Revenue here:
https://brainly.com/question/8645356
Tips for Successful LinkedIn Prospecting?
Answer:
Sales prospecting is one of the most essential elements of the whole sales process.
Some tips are;
Make LinkedIn Your Second HomeShow’em What you Got For ThemTweak and Polish Your ProfileConnect With StrategyBe more personal34.Mr. Hoffman has always been cautious with his money, but over the past two weeks he has developed grandiose plans to bet his entire life savings on a single horse race. With unrestrained exuberance he has also been giving everybody he sees unsolicited advice on how to make millions in the stock market. Mr. Hoffman's behavior is most indicative of
Answer:
mania
Explanation:
From the question we are informed about Mr. Hoffman who has always been cautious with his money, but over the past two weeks he has developed grandiose plans to bet his entire life savings on a single horse race. With unrestrained exuberance he has also been giving everybody he sees unsolicited advice on how to make millions in the stock market. Mr. Hoffman's behavior is most indicative of mania. Mania can be regarded as psychological condition which is responsible for a person to be experiencing intense moods,delusions as well as unreasonable euphoria and hyperactivity. Mania can also be regarded as manic episodes, and this is a symptom of bipolar disorder, one that is experiencing this may not be able to sleep very well or eat well, they have experience of hallucinations as well as some perceptual disturbances.
g The company is deciding whether to drop product line Apple because it has an operating loss. Assuming fixed costs are unavoidable, if Berry Pie Inc. drops product line Apple and rents the space formerly used to produce product Apple for $20,000 per year, total operating income will be ________.
Fruit Pie Inc. has three product lines—Strawberry, Cherry, and Apple. The following information is available:
Strawberry Cherry Apple
Sales revenue $70,000 $60,000 $31,000
Variable costs (20,000) (15,000) (11,000)
Contribution margin $50,000 $45,000 $20,000
Fixed costs (20,000) (5000) (25,000)
Operating income (loss) $30,000 $40,000 $(5000)
The company is deciding whether to drop product line Apple because it has an operating loss. Assuming fixed costs are unavoidable, if Berry Pie Inc. drops product line Apple and rents the space formerly used to produce product Apple for $20,000 per year, total operating income will be ________.
Group of answer choices
$25,000
$65,000
$11,000
$20,000
Answer:
Fruit Pie Inc.
Assuming fixed costs are unavoidable, if Berry Pie Inc. drops product line Apple and rents the space formerly used to produce product Apple for $20,000 per year, total operating income will be ________.
= $65,000.
Explanation:
a) Data and Calculations:
Strawberry Cherry Apple
Sales revenue $70,000 $60,000 $31,000
Variable costs (20,000) (15,000) (11,000)
Contribution margin $50,000 $45,000 $20,000
Fixed costs (20,000) (5000) (25,000)
Operating income (loss) $30,000 $40,000 $(5000)
Income Statement after the Elimination of Apple:
Strawberry Cherry Total
Sales revenue $70,000 $60,000 $130,000
Variable costs (20,000) (15,000) (35,000)
Contribution margin $50,000 $45,000 $95,000
Fixed costs (20,000) (5000) (25,000)
Fixed costs (Apple's) (25,000)
Rent income 20,000
Operating income (loss) $30,000 $40,000) $65,000
During June, Buttrey Corporation incurred $84,000 of direct labor costs and $24,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:
Answer:
debit to work in process of $84,000
Explanation:
Preparation of The journal entry to record the accrual of these wages
The journal entry to record the accrual of these wages would include a: DEBIT TO WORK IN PROCESS of 84,000
Debit work in process $84,000
Credit to factory payroll $84,000
(To record the accrual of wages)
Therefore The journal entry to record the accrual of these wages would include a: debit to work in process of $84,000
A stock has an expected return of 16.1 percent, the risk-free rate is 6.45 percent, and the market risk premium is 7.2 percent. What must the beta of this stock be
Answer:
the beta of the stock is 1.34
Explanation:
The calculation of the beta of the stock should be
As we know that
Expected rate of return = Risk free rate + beta × market risk premium
16.1 = 6.45% + beta × 7.2%
16.1% - 6.45% = beta × 7.2%
9.65% = beta × 7.2%
So, the beta should be
= 9.65% ÷ 7.2%
= 1.34
Hence, the beta of the stock is 1.34
Pureform, Inc., uses the weighted-average method in its process costing system. It manufactures a product that passes through two departments. Data for a recent month for the first department follow:
Units Materials Labor Overhead
Work in process inventory, beginning 64,000 $64,800 $27,900 $34,600
Units started in process 609,000
Units transferred out 630,000
Work in process inventory, ending 43,000
Cost added during the month $856,330 $343,735 $426,740
The beginning work in process inventory was 85% complete with respect to materials and 70% complete with respect to labor and overhead. The ending work in process inventory was 65% complete with respect to materials and 25% complete with respect to labor and overhead.
Required:
a. Compute the first department's equivalent units of production for materials, labor, and overhead for the month.
b. Determine the first department's cost per equivalent unit for materials, labor, and overhead for the month.
Answer:
Pureform, Inc.
Materials Labor Overhead
a. Equivalent units of production 657,950 640,750 640,750
b. Cost per equivalent unit $1.4 $0.58 $0.67
Explanation:
a) Data and Calculations:
Units
Work in process inventory, beginning 64,000
Units started in process 609,000
Units available for processing 673,000
Units transferred out 630,000
Work in process inventory, ending 43,000
Materials Labor Overhead
Work in process inventory, beginning $64,800 $27,900 $34,600
Cost added during the month $856,330 $343,735 $426,740
Total production costs for the month $921,130 $371,635 $430,200
Equivalent units of production:
Units Materials Labor Overhead
Units transferred out 630,000 630,000 630,000 630,000
Work in process inventory, ending 43,000 27,950 10,750 10,750
Equivalent units of production 657,950 640,750 640,750
Cost per equivalent unit:
Materials Labor Overhead
Total production costs for the month $921,130 $371,635 $430,200
Equivalent units of production 657,950 640,750 640,750
Cost per equivalent unit $1.4 $0.58 $0.67
During April, Cavy Company incurred factory overhead as follows:
Indirect materials $11,600
Factory supervision labor 3,700
Utilities 500
Depreciation (factory) 600
Small tools 230
Equipment rental 720
Journalize the entry to record the factory overhead incurred during April.
Answer and Explanation:
The journal entry is given below:
Factory Overhead $17,350
Materials $11,600
Wages Payable $3,700
Utilities payable $500
Accumulated Depreciation $600
Small tools $230
Equipment Rental payable $720
(To record the factory overhead incurred during April)
Here the factory overhead is debited as it increased the expense and credited the payable accounts as it increased the liabilities, credited the material, accumulated depreciation and small tools
Change Treaster in equilibrium Income Investment adultiplier =Y-S II 1-6 In au A the (ID Accure acanany Tax Increased by eas what will be the change in equilibrium Income if the slope of the saving function is 0.5 Initial equilibrium income was cu 1000 what will be the new squilibrium. & Incame after tax decrease Interprete your findings
Answer:
실례합니다? 당신은 이것을 의미합니까?
Explanation:
균형에서 Treaster의 변화 소득 투자 성체 = YS II 1-6 In au A (ID Accure acanany Tax 증가 eas만큼 균형의 변화는 얼마입니까 저축 함수의 기울기가 0.5인 경우 소득 초기 균형 소득은 cu 1000 새로운 균형이 되십시오. & 세금 감면 후 소득 조사 결과 해석 ??
Which of the following is true regarding the corporate form of ownership?
A. All of these
B. Generally has the greatest ability accumulate capital.
C. Separate legal entity in the eyes of the law.
D. Most complex form of ownership.
Answer:
A. All of these
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries. Also, it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity.
Generally, a corporate form of ownership is considered to be perpetual in nature.
Corporations can be sold to investors through stocks or shares, as a public entity. Thus, a company that engages in the sales of ownership shares to many investors is referred to as a corporation.
Some examples of multinational firms are Ap-ple, Volkswagen, G-oogle, Shoprite, Nestlé, Accenture, Shell BP, Chevron etc.
On a related note, an owner of a corporation is commonly referred to as a stockholder.
The true statements regarding the corporate form of ownership are;
I. Generally has the greatest ability accumulate capital.
II. Separate legal entity in the eyes of the law.
III. Most complex form of ownership.
Higher customer satisfaction and more efficient use of resources are impacts of businesses that operate with a _______
a: cost saving motive
b: customer service motive
c: efficiency motive
d: profit motive
Answer:
customer service motive
Answer:
I believe it's C: efficiency motive.
Explanation:
I did inspect element on course hero for the same question, and the answer was highlighted. Additionally, the question seems to highlight efficient uses of resources purposefully in businesses, so it seems that efficiency motive also goes hand in hand with that.
Asian Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months for the current year are as follows: Month Sales
October 10,000
November 14,000
December 13,000
Finished goods inventory at the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month's sales. Asian Lamp expects to sell the lamps for $25 each. January sales is projected at 16,000 lamps.
In going from the sales budget to the production budget, adjustments to the sales budget need to be made for
a. cash receipts.
b. finished goods inventories.
c. factory overhead costs.
d. selling expenses
Answer:
Asian Lamp Company
In going from the sales budget to the production budget, adjustments to the sales budget need to be made for
b. finished goods inventories.
Explanation:
a) Data and Calculations:
Sales Budget October November December January
Ending inventory 3,500 3,250 4,000
Estimated sales units 10,000 14,000 13,000 16,000
Units available for sale 13,500 17,250 17,000
Beginning inventory 3,000 3,500 3,250 4,000
Production units 10,500 13,750 13,750
ABC Corp. issued $100,000 of bonds at a premium; as a result, the company: A. received more than $100,000. B. received less than $100,000. C. will pay the bondholders more money on the maturity date than it received on the issue date. D. received $100,000.
Answer:
A
Explanation:
If the yield to maturity is greater than the bonds coupon rate the bond is selling at a discount. Bond issuers would receive less than the face value of the bond as payment when the bond is sold
If the yield to maturity is less than the bonds coupon rate the bond is selling at a premium. Bond issuers would receive a greater sum than the face value of the bond as payment when the bond is sold
If a bond’s coupon rate is equal to its yield to maturity, then the bond is selling at par. Bond issuers would receive an amount equal to the face value of the bond as payment when the bond is sold
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs:
Direct materials $5.00
Direct labor 3.00
Variable overhead 1.50
Fixed overhead 7.00
Variable marketing cost 1.20
Fixed overhead per unit 1.20
Total fixed factory overhead is $280,000 per month. During October, 38,400 units were sold at a price of $24, and fixed marketing and administrative expenses were $130,500.
Required:
1. Calculate the cost of each unit using absorption costing.
2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing?
3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October.
Answer:
Following are the responses to the given question:
Explanation:
For question 1:
Calculating the cost per unit:
[tex]\text{Direct material}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$5\\\\\text{Direct labor} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$3\\\\\text{Variable overhead}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$1.5\\\\\text{Fixed overhead}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$7\\\\\text{Cost per unit}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$16.5\\\\[/tex]
For question 2:
Calculating the ending inventory units:
[tex]= \text{Beginning inventory + units produced - ending inventory}\\\\= 0+40,000-38,400\\\\= 1600\ units\\\\[/tex]
Calculating the cost for the Ending inventory:
[tex]=1600\ units \times \$16.5\\\\=\$26,400\\\\[/tex]
For question 3:
Calculating the absorption costing for the income statement:
Particular Amount
Sales [tex](38,400\times \$24)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$921,600[/tex]
-COGS[tex](38,400\times \$16.5)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$633,600[/tex]
Gross profit [tex]\$288,000[/tex]
Cost of variable marketing [tex](\$1.2\times 38,400)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$46,080[/tex]
marketing and administrative costs are fixed [tex]\$130,500[/tex]
Net income [tex]\$111,420[/tex]
A corporation issues for cash $1,000,000 of 8%, 20-year bonds, interest payable annually, at a time when the market rate of interest is 10%. The straight-line method is adopted for the amortization of bond discount or premium. Which of the following statements is true?
a. The amount of the annual interest expense is computed at 8% of the bond carrying amount at the beginning of the year.
b. The amount of the annual interest expense gradually decreases over the life of the bonds.
c. The amount of unamortized discount decreases from its balance at issuance date to a zero balance at maturity.
d. The amount of unamortized premium decreases from its balance at issuance date to a zero balance at maturity.
Answer:
d.The unamortized discount decreases from its balance at issuance date to a zero balance at maturity
Explanation:
The amount of annual interest is the carrying amount at the beginning of each year multiplied by the market rate of interest of 10%(not the discount rate of 8%)
Also, a bond whose market interest rate is higher than the coupon rate would be issued at a discount(not at a premium, let alone having an unamortized premium)
Explain how the hotel business could create added value to the goods they buy in?
Answer:
Well-designed rooms, attractive and comfortable appliances, well-dressed and respectful assistants, good quality entertainment equipment, and delightful food made by experienced chefs.
Explanation:
Guests will feel more welcomed to a clean and comfortable hotel. Respectful assistants, good quality entertainment equipment, and food made by experienced chefs can boost the morale of guests.
MC Qu. 150 Glaston Company manufactures... Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 184,000 in October, 192,500 in November, and 189,000 in December. Glaston assigns variable overhead at a rate of $0.80 per unit of production. Fixed overhead equals $141,000 per month. Compute the total budgeted overhead that would appear on the factory overhead budget for month of October.
Answer:
$288,200
Explanation:
Computation for the total budgeted overhead that would appear on the factory overhead budget for month of October.
Using this formula
Total budgeted overhead=(Units expected to be produced*Variable overhead rate)+Fixed overhead
Let plug in the formula
Total budgeted overhead=(184,000 * $0.80) + $141,000
Total budgeted overhead=$147,200+$141,000
Total budgeted overhead = $288,200
Therefore the total budgeted overhead that would appear on the factory overhead budget for month of October is $288,200
Corris Co. accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost January 10,000 $17,000 February 8,000 13,500 March 9,000 14,400 April 7,000 12,500 Compute the variable and fixed cost elements using the high-low method. (Round variable cost to 2 decimal places, e.g. 15.25.)
Variable cost $ ______ per mile
Fixed cost $ ______
Answer:
Variable cost per unit= $1.5
Fixed costs= $2,000
Explanation:
Giving the following information:
Miles Driven Total Cost
January 10,000 $17,000
February 8,000 13,500
March 9,000 14,400
April 7,000 12,500
To calculate the variable and fixed costs under the high-low method, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (17,000 - 12,500) / (10,000 - 7,000)
Variable cost per unit= $1.5
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 17,000 - (1.5*10,000)
Fixed costs= $2,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 12,500 - (1.5*7,000)
Fixed costs= $2,000
Panther Co. had a quality-assurance warranty liability of $350,000 at the beginning of 2021 and $310,000 at the end of 2021. Warranty expense is based on 4% of sales, which were $50 million for the year. What amount of warranty costs were paid during 2021?
a. $0.
b. $1,960,000.
c. $2,000,000.
d. $2,040,000.
Answer:B
Explanation: :)
what are the purpose of the information in Management?
Answer:
The purpose of information management is to: design, develop, manage, and use information with insight and innovation. support decision making and create value for individuals, organizations, communities, and societies.
Answer:
It helps dictate how businesses form strategies, and implement processes based on them.
A downward-sloping yield curve generally indicates which of the following
(I) higher current short-term interest rates
(II) higher inflation expectations in future years
(III) a strong possibly of a recession within the next year
a) (I) and (III).
b) (II).
c) (III) only.
d) all are correct.
Answer:
a
Explanation:
A yield curve is a graph that plots the interest rate of bonds at a set point in time.
When the yield curve is downward sloping, it is expected that short term interest rate would be higher than the long term interest rate.
A downward sloping yield curve can be an indictor of coming recession.
A recession is when the GDP of a country for two consecutive quarters is negative. In a period of recession, interest rate is usually lower.
A downward sloping yield curve can also be an indicator that there is an expectation of lower inflation rate in coming years.
If the yield curve is upward sloping, the short term interest rate would be lower than the long term interest rate
A flat yield curve is an indicator that interest rate would be constant
A campus deli serves 200 customers over its busy lunch period from 11:00 a.m. to 1:00 p.m. A quick count of the number of customers waiting in line and being served by the sandwich makers shows that an average of 10 customers are in process at any point in time. The average amount of time that a customer spends in process is _______ minutes (round to the nearest integer).
Answer: 2 hours
Explanation:
You believe you must withdraw $12,000 per month during retirement. You plan to be retired for 30 years. Assuming your money will earn 4.5% during retirement and also assuming that you will not adjust your withdrawals for inflation, how much money will you need to have on hand on the day you retire, in order to fund your retirement?
a. $1,756,245.98.
b. $1,321,788.32.
c. $12,133,524.55.
d. $2,368,333.91.
Triết lý " khách hàng luôn đúng" ?
Answer:
customers are the doctor.
Omega Enterprises budgeted the following sales in units: January 40,000 February 30,000 March 50,000 Omega's policy is to have 30% of the following month's sales in inventory. On January 1, inventory equaled 8,000 units. February production in units is: a.36,000. b.40,000. c.20,000. d.28,000. e.26,500.
Answer:
a. 36,000
Explanation:
Calculation to determine what February production in units is:
Sales for the month 30,000
Add Ending inventory 15,000
(50,000*0.3)
Less Beginning inventory (9,000)
(30,000*0.3)
February production in units 36,000 units
Therefore February production in units is: 36,000 units
For 2020, Ms. Deming earned wages totaling $225,000.
Required:
1. Calculate any 0.9 percent additional Medicare tax owed, assuming that Ms. Deming is single.
2. Calculate any 0.9 percent additional Medicare tax owed, assuming that Ms. Deming files a joint return with her husband who earned $100,000 of wages for 2019.
Answer:
Additional Medicare is charged on the wages that are higher than $200,000.
1. Medicare owed assuming Ms. Deming is single:
= (225,000 - 200,000) * 0.9%
= 25,000 * 0.9%
= $225
2. Medicare owed assuming Ms. Deming files a joint return with her husband.
When filed together, their wages would be considered jointly.
= ( (100,000 + 225,000) - 200,000) * 0.9%
= 125,000 * 0.9%
= $1,125
Assume that a firm had shareholders' equity on the balance sheet at a book value of $1,500 at the end of 2010.During 2011 the firm earns net income of $1,900,pays dividends to shareholders of $200,and issues new stock to raise $500 of capital.The book value of shareholders equity at the end of 2011 is:_______.
A) $2,750
B) $250
C) $1,450
D) $3,700
Answer:
The book value of shareholders equity at the end of 2011 is:_______.
D) $3,700.
Explanation:
a) Data and Calculations:
Beginning shareholders equity book value = $1,500
Net income during 2011 = 1,900
Dividends paid to shareholders (200)
Issuance of new stock 500
Ending shareholders equity book value = $3,700
b) The book value of equity at the end of 2011 is equal to the book value at the beginning of 2011 plus net income generated during 2011, issuance of new stock, minus dividends paid to shareholders.
