Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement, Balance sheet, Statement of owner’s equity and Cash flows statements. Statement of Retained earnings : Items reported on a retained earnings statement are explained as follows: Beginning Balance of Retained earnings is the ending balance of the retained earnings of the previous year. Net Income or Net loss is the amount of net income earned or net loss incurred for the year. Dividends Paid are taken for the year. Ending Balance of Retained earnings is calculated as follows: Ending Balance of Retained earnings = Beginning Balance of Retained earnings + Net Income − Net income − Dividends Paid Requirement-1 To Calculate: The amount of retained earnings as on Dec. 31, 2019.

Question

Piag question Applying the Accounting Equation and Calculating Return on Equity and Debt-to-Equity Ratio At the end of 2019, Alphabet, Inc., reported stockholders' equity of $201,442 million and total assets of $275,909 million. Its balance in stockholders' equity at the end of 2018 was $177,628 million. Net income in 2019 was $34,343 million. a. Calculate Alphabet, Inc., return on equity ratio for 2019. (Round your answer to one decimal place.) Note: Enter answer a percent. Round your answer to one decimal place. 72.8 % b. Calculate its debt-to-equity ratio as of December 31, 2019. (Hint: Apply the accounting equation to determine total liabilities.) Note: Enter answer in decimal form. Round your answer to one decimal place. 0

Answer 1

Question

Chapter 1, Problem 49E

To determine

Concept Introduction:

Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement, Balance sheet, Statement of owner’s equity and Cash flows statements.

Statement of Retained earnings:

Items reported on a retained earnings statement are explained as follows:

Beginning Balance of Retained earnings is the ending balance of the retained earnings of the previous year.

Net Income or Net loss is the amount of net income earned or net loss incurred for the year.

Dividends Paid are taken for the year.

Ending Balance of Retained earnings is calculated as follows:

Ending Balance of Retained earnings = Beginning Balance of Retained earnings + Net Income − Net income − Dividends Paid

Requirement-1

To Calculate:

The amount of retained earnings as on Dec. 31, 2019.

To determine

Concept Introduction:

Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement, Balance sheet, Statement of owner’s equity and Cash flows statements.

Statement of Retained earnings:

Items reported on a retained earnings statement are explained as follows:

Beginning Balance of Retained earnings is the ending balance of the retained earnings of the previous year

Net Income or Net loss is the amount of net income earned or net loss incurred for the year.

Dividends Paid are taken for the year.

Ending Balance of Retained earnings is calculated as follows:

Ending Balance of Retained earnings = Beginning Balance of Retained earnings + Net Income − Net income − Dividends Paid

Requirement-2

To Discuss:

The dividend policy of the company,

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Piag question Applying the Accounting Equation and Calculating Return on Equity and Debt-to-Equity Ratio At the end of 2019, Alphabet, Inc., reported stockholders' equity of $201,442 million and total assets of $275,909 million. Its balance in stockholders' equity at the end of 2018 was $177,628 million. Net income in 2019 was $34,343 million. a. Calculate Alphabet, Inc., return on equity ratio for 2019. (Round your answer to one decimal place.) Note: Enter answer a percent. Round your answer to one decimal place. 72.8 % b. Calculate its debt-to-equity ratio as of December 31, 2019. (Hint: Apply the accounting equation to determine total liabilities.) Note: Enter answer in decimal form. Round your answer to one decimal place. 0