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    Calculating Total Assets

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    The Baldwin Company currently has the following balances on their balance sheet:

    Total Liabilities $138,888
    Common Stock $55,651
    Retained Earnings $43,516

    Suppose next year the Baldwin Company generates $36,500 in net profit and pays $15,000 in dividends and total liabilities and common stock remain unchanged. What must their total assets be next year?
    Select:
    $259,555
    $99,167
    $289,555
    $238,055

    © BrainMass Inc. brainmass.com October 10, 2019, 7:26 am ad1c9bdddf
    https://brainmass.com/business/finance/calculating-total-assets-581559

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    Next year, Baldwin Company's increase in Retained Earnings is:
    Net profit - Dividends = $36,500 - $15,000 = $21,500

    Hence, next year's Retained Earnings = ...

    Solution Summary

    This solution involves calculating the total assets liability common stock.

    $2.19