Use the following information/data to answer the next two questions. Marsh Balan

ID: 2794565 • Letter: U

Question

Use the following information/data to answer the next two questions. Marsh Balance Sheet 2005 2004 1,4001,000 Short-term Debt 2005 2004 Cash Accounts Receivable Inventory ,700 200 Accounts Payables 900 850 150 400 300 ,450 1,250 6,000 5,750 2,250 2,500 100 Total Current Assets Net Fixed Assets Non-Operating Assets 1800 1500 Other Current Liabilities 4,900 2,700 Total Current Liabilities 9,500 10,500 Long-term Debt 1100 1,300 Non-Operating Liabilities Total Equity 5,800 5,000 15,500 14,500! Total Assets 15,500 14,500 Total Equity and Debt Tax Rate 35%. Income Statement Sales COGS SG&A; Depreciation EBIT Interest Expense Taxes Net Income Dividends 2,000 8,500 700 1000 1,800 300 525 975 300

Explanation / Answer

Solution :- Equity ledger account (for Year ended on Dec. 31, 2005)

To Dividends

To Closing balance

300

5800

By Opening balance

By Net income

By Cash (5000 + 975 - 300 - 5800)

5000

975

125

Conclusion :- New equity issued by Marsh = $ 125.

Particulars Debit ($) Particulars Credit ($)