The summaries of data from the balance sheet, income statement, and retained earnings statement for two corporations, Walco Corporation and Gunther Enterprises, are presented below for 2022. Determine the missing amounts. Assume all changes in stockholders’ equity are due to changes in retained earnings. Walco Corporation Gunther Enterprises
Beginning of year
Total assets 112,000 154,000
Total liabilities 67,000 $83,600 (d)
Total stockholders' equity 45,000 (a) 70,400
End of year
Total assets 165,300 (b) 177,000
Total liabilities 112,000 56,000
Total stockholders' equity 53,300 121,000 (e)
Changes during year in retained earnings
Dividends 43,700 (c) 4,400
Total revenues 213,000 124,800 (f)
Total expenses $161,000 83,000

Walco Corporation and Gunther Enterprises

Determination of the missing amounts:

Ending stockholders' equity      53,300          107,800

Beginning stockholders' equity 45,000 (a)      70,400

Retained Earnings                        8,300           37,400

Which is the same as:

Total revenues                          213,000            124,800 (f)

Total expenses                        $161,000             83,000

Net Income                                 52,000              41,800

Dividends                                    43,700 (c)           4,400

Retained Earnings                        8,300             37,400

Explanation:

a) Data and Calculations:

                                    Walco Corporation  Gunther Enterprises

Beginning of year

Total assets                                  112,000          154,000

Total liabilities                               67,000         $83,600 (d)

Total stockholders' equity           45,000 (a)       70,400

End of year

Total assets                                165,300 (b)      177,000

Total liabilities                             112,000            56,000

Total stockholders' equity          53,300            121,000 (e)

Changes during year in retained earnings

Dividends                                    43,700 (c)           4,400

Total revenues                          213,000            124,800 (f)

Total expenses                        $161,000             83,000

Net Income                                 52,000             41,800

Dividends                                    43,700 (c)          4,400

Retained Earnings                        8,300            37,400

Ending stockholders' equity      53,300          107,800

Beginning stockholders' equity 45,000 (a)      70,400

Retained Earnings                        8,300           37,400

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

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