Question

At the end of the current period, Maltese, Inc. reports the following amounts: Assets = $52,300; Liabilities = $21,100; Dividends = $5,810; Revenues = $20,100; Expenses = $13,600. Calculate net income and stockholders' equity at the end of the period.

Answer 1

The net income for Maltese, Inc. is calculated as $6,500, which is the total revenues minus the total expenses. Stockholders' equity is determined to be $31,200, calculated by subtracting total liabilities from total assets.

Step-by-step explanation:

To calculate the net income for Maltese, Inc., you subtract the total expenses from the total revenues. Thus, the net income would be:

Net Income = Revenues - Expenses

Net Income = $20,100 - $13,600

Net Income = $6,500

To calculate the stockholders' equity at the end of the period, you would use the accounting equation: Assets = Liabilities + Stockholders' Equity. Thus, the stockholders' equity would be:

Stockholders' Equity = Assets - Liabilities

Stockholders' Equity = $52,300 - $21,100

Stockholders' Equity = $31,200

Answer 2

SE = 30,510

Step-by-step explanation:

We are going to use the accounting equation to solve for SE:

Assets = Liablities + Equity

Assets = Liab + SE + net income - dividends

First we have to solve for net income:

20,100 Revenues - 13,600 expenses = 6,500 net income

Now we can post the know value in the formula an solve for Stockholders equity:

52,300 = 21,100 + SE + 6,500 - 5,810

SE = 52,300 - 21,1000 + 6,500 + 5,810

SE = 30,510