Three Different Companies--A, B, and C--Have the Same Balance Sheet

question 36

Essay

Three different companies--A, B, and C--have the same balance sheet at the beginning and the end of a year.These are summarized below: $$\begin{array} { l c c } & \text { Total Assets } & \text { Total Liabilities } \\\text { Beginning of the year } & \$ 500,000 & \$ 250,000 \\\text { End of the year } & \$ 1,200,000 & \$ 350,000\end{array}$$ Given the data above and the additional information for each company below, determine the net income (loss) for each company.
Company A......No additional investment was made by stockholders, and no dividends were paid.
Company B........Stockholders invested an additional $200,000, and no dividends were paid.
Company C ....... Stockholders invested $450,000, and dividends of $50,000 were paid.

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Definitions:

Information-Processing Approach

An approach that focuses on the ways children process information about their world—how they manipulate information, monitor it, and create strategies to deal with it.

Researchers

Individuals who conduct systematic investigations to establish facts or principles or to collect information on a subject.

Metacognition

Cognition about cognition, or “knowing about knowing.”

Metacognitive Strategies

Techniques used to help an individual understand, control, and manipulate their own cognitive processes.