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For the current year, Vidalia Company reported revenues of $250,000 and expenses of $225,000. At the beginning of the year, its retained earnings had a balance of $95,000. During the year, Vidalia paid $11,000 dividends to shareholders. Its contributed capital was $56,000 at the beginning of the year, and it did not issue any new stock during the year. Vidalia's assets total $237,500 on December 31 of the current year.
What are Vidalia's total liabilities on December 31 of the current year?

Respuesta :

Answer:

$156,500

Explanation:

We know that

Total assets = Total liabilities + stockholder equity

where,

Total assets = $237,500

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

= $95,000 + $25,000 - $11,000

= $109,000

The net income is

= $250,000 - $225,000

= $25,000

So, the stockholder equity is

= Contributed capital + retained earnings

= $56,000 + $25,000

= $81,000

Now the total liabilities

= $237,500 - $81,000

= $156,500

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