Fulton Company Was Established at the Beginning of 2019 When

question 14

Essay

Fulton Company was established at the beginning of 2019 when several investors paid a total of $200,000 to purchase Fulton common stock.No additional investments in common stock were made during the year.By December 31,2019,Fulton had cash on hand of $45,000,office equipment of $40,000,inventory of $156,000,and accounts payable of $10,000.Sales for the year were $812,000.Of this amount,customers still owed $20,000.Fulton declared and paid dividends of $25,000 to its stockholders during 2019.
1.Based on the information above,prepare a balance sheet for Fulton Company at December 31,2019.In the process of preparing the balance sheet,you must calculate the ending balance in retained earnings.
2.Prepare a statement of stockholders' equity for the year ended December 31,2019.
3.What was the amount of Fulton's net income for 2019?
4.Was Fulton successful during its first year in operation? Explain your answer.

---

Definitions:

Parasocial Relationship

A type of relationship where individuals feel an emotional connection to a media personality or character without any reciprocal interaction.

Anxious-Ambivalent Attachment

A type of attachment characterized by intense emotions, fear of abandonment, and both desire for and resistance to closeness in relationships.

Matching Phenomenon

The tendency for individuals to seek out and form relationships with those who are similar to them in attractiveness and other traits.

Realistic Expectations

Reasonable and achievable anticipations about outcomes based on evidence and past experiences, free from over-optimism or excessive pessimism.