Homework 1 solutions - ORIE 3150 Homework #1 1. The Padre...

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ORIE 3150 Homework #1 1. The Padre Corporation had the following assets and liabilities on the dates indicated. Padre Corporation was incorporated on January 1, 2002 with a cash investment of $100,000 from its shareholders. The corporation’s fiscal year ends on December 31 each year. Date Total Assets Total Liabilities December 31, 2002 $500,000 $350,000 December 31, 2003 $560,000 $395,000 December 31, 2004 $690,000 $500,000 During 2002, $15,000 in cash dividends were declared and paid, there were no additional investments. In 2003, the cash dividends were zero, but investors invested an additional $80,000 cash in the business. In 2004, cash dividends of $20,000 were declared and paid, there were no additional investments. Find the annual net income for each year, for 2002, 2003, and 2004. Assume that Padre Corporation does not income taxes. 2002 Initial Investments 100,000.00 Net Income 65,000.00 Dividends (15,000.00) Ending OE 150,000.00 2003 Beginning OE 150,000.00 Additional Investment 80,000.00 Net Income (65,000.00) Dividends - Ending OE 165,000.00 2004 Beginning OE 165,000.00 Net Income 45,000.00 Dividends (20,000.00) Ending OE 190,000.00
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2. Listed in random order are figures for the Flick Co. as of Dec. 31, 2005. Sort the accounts, discard unneeded data, and prepare a balance sheet in the proper format. Accounts Payable
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This note was uploaded on 04/19/2009 for the course ORIE 315 taught by Professor Callister during the Spring '08 term at Cornell University (Engineering School).

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Homework 1 solutions - ORIE 3150 Homework #1 1. The Padre...

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