Use the following information to answer questions
Packard Company engaged in the following transactions during 2015,its first year in operations: (Assume all transactions are cash transactions. )
1)Acquired $950 cash from the issue of common stock.
2)Borrowed $420 from a bank.
3)Earned $650 of revenues.
4)Paid expenses of $250.
5)Paid a $50 dividend.
During 2016,Packard engaged in the following transactions: (Assume all transactions are cash transactions. )
1)Issued an additional $325 of common stock.
2)Repaid $220 of its debt to the bank.
3)Earned revenues of $750.
4)Incurred expenses of $360.
5)Paid dividends of $100.
-The amount of assets on Packard's 2016 balance sheet is
A)$2,115.
B)$440.
C)$2,215.
D)$395.

Question

Quizplus · Accepted Answer

The total assets on Packard's 2016 balance sheet are $2,115. This is calculated by adding the beginning cash balance of $950 to the cash inflows from operations ($650 in 2015 and $750 in 2016) and subtracting the cash outflows from operations ($250 in 2015 and $360 in 2016) and dividends ($50 in 2015 and $100 in 2016).

Use the Following Information to Answer Questions