Here are incomplete financial statements for donavan. inc. calculate the missing amounts.

Exercise 1-9 Here are incomplete financial statements for Donavan, Inc. Calculate the missing amour DONAVAN, INC. Balance Sheet Assets Cash Inventory Buildings Total assets $ 14,400 17,400 37,600 $69,400 Liabilities and Stockholders' Equity Liabilities $5,300 Accounts payable Stockholders' Equity Common stock Retained earnings Total liabilities and stockholders' equity $69,400

Answer

e.

Net income: This is the difference of total revenues and total
expenses.

Beginning retained earnings + Net income – Dividends = Ending
retained earnings

19,400 + Net income – 4,160 = 34,400

Net income = 34,400 – 19,400 + 4,160

           
        = $19,160 (Answer)

d.

Net income is calculated as above.

Net income = $19,160 (Answer)

c.

Cost of goods sold is associated with all sorts of direct cost
for production.

Revenues – Cost of goods sold – Salaries = Net income

85,500 – Cost of goods sold – 10,410 = 19,160

Cost of goods sold = 85,500 – 10,410 – 19,160

                       
      = $55,930 (Answer)

b.

Ending retained earnings should be considered here, since the
balance sheet as at the year-end.

Retained earnings = $34,400 (Answer)

a.

Common stock is the amount of shares issued by the company.

Accounts payable + Common stock + Retained earnings = Total
liabilities and equity

5,300 + Common stock + 34,400 = 69,400

Common stock = 69,400 – 34,400 – 5,300

                       
= $29,700 (Answer)