Pittman Rose Beckman Jaffe December 31, 2011: Assets $80,000 $100,000 $120,000 $
ID: 2772031 • Letter: P
Question
Pittman Rose Beckman Jaffe
December 31, 2011:
Assets $80,000 $100,000 $120,000 $150,000
Liabilities $50,000 $40,000 $75,000 $60,000
Equity $30,000 $60,000 $45,000 $90,000
December 31, 2012:
Assets $100,000 $130,000 $180,000 $225,000
Liabilities $55,000 $62,000 $70,000 $80,000
Equity $45000 $68,000 $110,000 $145,000
During 2012:
Total Revenues c $400,000 i $500,000
Total Expenses $330,000 f $360,000 l
Explanation / Answer
2012 Pittman profit:
= Increase in assets – Increase in liabilities
= $20,000-$5,000
= $15,000
Sales = expenses + Profit
= $330,000+$15,000
= $345,000 (c)
2012 Rose profit:
= Increase in assets – Increase in liabilities
= $30,000-$22,000
= $8,000
Sales = expenses + Profit
$400,000 = expenses +$8,000
= $392,000 (f)
2012 Beckman profit:
= Increase in assets – Increase in liabilities
= $60,000+$5,000
= $65,000
Sales = expenses + Profit
= $360,000+$65,000
= $425,000 (i)
2012 Jaffe profit:
= Increase in assets – Increase in liabilities
= $75,000-$20,000
= $55,000
Sales = expenses + Profit
$500,000 = expenses +$55,000
= $445,000 (l)