Question

Hopewell Corporation Balance Sheet As of December 31, 2019 (amounts in thousands) Cash 21,000 Liabilities 20,000 Other Assets 26,000 Equity 27,000 Total Assets 47,000 Total Liabilities & Equity 47,000 Hopewell Corporation Income Statement January 1 to March 31, 2020 (amounts in thousands) Revenue 5,500 Expenses 2,600 Net Income 2,900 Between January 1 and March 31, 2020: 1. Cash decreases by $100,000 2. Liabilities decrease by $300,000 3. Paid-In Capital does not change 4. Dividends paid of $300,000 What is the value for Other Assets on March 31, 2020?

Answer 1

The value for Other Assets on March 31, 2020 $29,000,000

Step-by-step explanation:

Hopewell Corporation Balance Sheet As of December 31, 2019

Cash = $21,000,000

Other Assets = $26,000,000

Total Assets = $47,000,000

Liabilities = $20,000,000

Equity = $27,000,000

Total Liabilities & Equity = $47,000,000

Hopewell Corporation Income Statement January 1 to March 31, 2020

Revenue = $5,500,000

Expenses = $2,600,000

Net Income = $2,900,000

Between January 1 and March 31, 2020:

1. Cash decreases by $100,000

2. Liabilities decrease by $300,000

3. Paid-In Capital does not change

4. Dividends paid of $300,000

Assets

Cash = $21,000,000 - $100,000 = $20,000,000

Liabilities = $20,000,000 - $300,000 = $19,700,000

Equity = $27,000,000 + $2,600,000 - $300,000 = $29,300,000

Total Liabilities & Equity = $19,700,000 + $29,300,000 = $ 49,000,000

Other assets = $49,000,000 - $20,000,000 = $29,000,000