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QuestionFind missing values in these financial equations:
1. Net Income=27000−18000Net \, Income = 27000 - 18000.
2. Dividends=11000+12000−17000Dividends = 11000 + 12000 - 17000.
3. Liabilities=24000−15000Liabilities = 24000 - 15000.
4. Net financing cash flows=26000−34000+17000Net \, financing \, cash \, flows = 26000 - 34000 + 17000.

Studdy Solution

STEP 1

Assumptions1. For the first equation, the revenue is \$27,000 and the expenses are \$18,000. . For the second equation, the increase in stockholders' equity is \$17,000, the issuance of common stock is \$11,000, and the net income is \$12,000.
3. For the third equation, the assets are \$24,000 and the stockholders' equity is \$15,000.
4. For the fourth equation, the total change in cash is \$26,000, the net operating cash flows are \$34,000, and the net investing cash flows are -\$17,000.

STEP 2

First, let's solve the first equation to find the net income. The formula isNet Income=Revenue−ExpensesNet \, Income = Revenue - Expenses

STEP 3

Now, plug in the given values for revenue and expenses to calculate the net income.
Net Income=$27,000−$18,000Net \, Income = \$27,000 - \$18,000

STEP 4

Calculate the net income.
Net Income=$27,000−$18,000=$9,000Net \, Income = \$27,000 - \$18,000 = \$9,000

STEP 5

Next, let's solve the second equation to find the dividends. The formula isDividends=Issuance of common stock+Net income−Increase in stockholders′ equityDividends = Issuance \, of \, common \, stock + Net \, income - Increase \, in \, stockholders' \, equity

STEP 6

Now, plug in the given values for the issuance of common stock, net income, and increase in stockholders' equity to calculate the dividends.
Dividends=$11,000+$12,000−$17,000Dividends = \$11,000 + \$12,000 - \$17,000

STEP 7

Calculate the dividends.
Dividends=$11,000+$12,000−$17,000=$6,000Dividends = \$11,000 + \$12,000 - \$17,000 = \$6,000

STEP 8

Next, let's solve the third equation to find the liabilities. The formula isLiabilities=Assets−Stockholders′ EquityLiabilities = Assets - Stockholders' \, Equity

STEP 9

Now, plug in the given values for assets and stockholders' equity to calculate the liabilities.
Liabilities=$24,000−$15,000Liabilities = \$24,000 - \$15,000

STEP 10

Calculate the liabilities.
Liabilities=$24,000−$15,000=$9,000Liabilities = \$24,000 - \$15,000 = \$9,000

STEP 11

Finally, let's solve the fourth equation to find the net financing cash flows. The formula isNet financing cash flows=Total change in cash−Net operating cash flows−Net investing cash flowsNet \, financing \, cash \, flows = Total \, change \, in \, cash - Net \, operating \, cash \, flows - Net \, investing \, cash \, flows

STEP 12

Now, plug in the given values for the total change in cash, net operating cash flows, and net investing cash flows to calculate the net financing cash flows.
Net financing cash flows=$26,000−$34,000−(−$17,000)Net \, financing \, cash \, flows = \$26,000 - \$34,000 - (-\$17,000)

STEP 13

Calculate the net financing cash flows.
Net financing cash flows=$26,000−$34,000+$17,000=$9,000Net \, financing \, cash \, flows = \$26,000 - \$34,000 + \$17,000 = \$9,000So, the missing values in the financial equations are. Net Income = \$9,0002. Dividends = \$6,0003. Liabilities = \$9,000. Net financing cash flows = \$9,000

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