SMU Classification: Restricted

HW 1

1. Compute the missing amount (?) for each company – $ amounts in millions. Show your work.

Bloomfield Corp. Libby Co. Nelson Inc.

Beginning balance
Assets 83 35 ?
Liabilities 47 23 2
Share capital 2 2 1
Retained earnings ? 10 4

Ending balance
Assets ? 54 8
Liabilities 49 34 ?
Share capital 2 ? 1
Retained earnings 33 ? ?

Income statement
Revenues 221 ? 18
Expenses 213 152 ?
Net income ? ? ?

Retained Earnings
Beginning retained earnings ? 10 4
Net income ? 10 3
Dividends ? 2 3
Ending retained earnings ? 18 4

2. At the end of the year, which company has the:

1) Highest net income?
2) Highest percent of net income to revenues?