Date Name Reg Number

1. Calculate the following:

a) If a business owns a piece of real estate worth $250,000, and they owe $180,000 on a loan for that
real estate, what is owners’ equity in the property?
b) ABC Corp’s Sales: $260,000, Cost of Goods Sold: $100,000, Salaries and Wages: $20,000, Rent
Expense: $15,000, Advertising Expense: $35,000, Cost of repairs resulting from fire: $50,000,
calculate ABC Corporation’s Net Income?
c) Using the following information, calculate the ending balance in Retained Earnings: Beginning
Retained Earnings: $10,000, Net Income: $5,000, Dividends Paid: $4,000.
d) Using the following information, calculate how much was paid out in dividends during the year:
Beginning Retained Earnings: $40,000, Net Income: $15,000, Ending Retained Earnings:
$30,000.

2. Executive club provided the following very limited set of data. Use this information to determine
net income for the year ending December 31, 2017 and 2018. The company was formed at the
beginning of January, 2016 by issuing Rs. 350,000 of capital stock. No additional shares are
issued during the 4-year period. The company’s 2019 dividends were equal to 50% of the 2019
net income.

Revenues, 2017 Rs. 315,000

Dividend, 2018 Rs. 52,500
Total equity, December 31, 2018 Rs. 735,000
Total liabilities, December 31, 2018 Rs. 770,000
Retained earnings, December 31, 2016 Rs. 143,500
Expenses, 2017 Rs. 154,000
Retained earnings, December 31, 2017 Rs. 280,000
Dividend, 2016 Rs. 35,000
Total assets, December 31, 2019 Rs. 1,750,000
Increase in liabilities, 2019 Rs. 175,000