Question

Items from the 2018 income statement, statement of retained earnings, and balance sheet of Activision Blizzard, Incorporated, are listed below in alphabetical order. Required: 1. Solve for the missing amounts 2. Is the company profitable? Book Complete this question by entering your answers in the tabs below. erences Reid ured Solve for the missing amounts (low amounts should be indicated with a minus sign) Activision Bilard, Incorporated Common Stock $ 4.790 Dividende Nel income (L) Retained Eaming. Beginning of Year 6.004 Retained Earnings, End of Year Total Assets 17,835 Total Expenses Total Liables 6.478 Town Revenues 7.500 Required 2 >

Answer 1

1. Net income = $7,030 ; Retained earnings, end of year = $13,034

2. Yes, the company is profitable in 2018 with a net income of $7,030.

Sure, I can help you with this. Here's how to solve for the missing amounts in the table:

1. Net Income:

We can calculate the net income by subtracting the total expenses from the total revenue:

Net income = Total revenue - Total expenses

Net income = $7,500 - $470

Net income = $7,030

2. Dividends:

Unfortunately, the information provided is not enough to determine the amount of dividends paid out. We would need additional information like the dividend payout ratio or the total amount of dividends paid.

3. Retained Earnings, End of Year:

We can calculate the retained earnings at the end of the year by adding the net income for the year to the beginning retained earnings:

Retained earnings, end of year = Retained earnings, beginning of year + Net income

Retained earnings, end of year = $6,004 + $7,030

Retained earnings, end of year = $13,034

4. Total Liabilities:

We cannot calculate the total liabilities from the information provided. We would need either the total equity (which is not given) or the sum of total assets and total liabilities, which is also not provided.

Once you have filled in the missing values, you can answer the second question:

Is the company profitable?

Yes, the company is profitable in 2018 with a net income of $7,030.

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