Common equity will be

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Earth’s Best Company has sales of $200,000, Cost of Goods Sold of 100,000, a net income of $20,000, and the following balance sheet: Cash $ 20,000 Accounts payable $ 40,000 Receivables 50,000 Other current liabilities 20,000 Inventories 150,000 Long-term debt 50,000 Net fixed assets 90,000 Common equity 200,000 Total assets $310,000 Total liabilities and equity $310,000 Assume that next year the firm again has net income of $20,000 pays a $5,000 dividend to shareholders, does not repurchase any stock, does not issue any stock, and makes a capital investment of $10,000 to buy some additional equipment. Next year, Common Equity will be:

Reference no: EM131839734

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Common equity will be : Earth’s Best Company has sales of $200,000, Cost of Goods Sold of 100,000, a net income of $20,000, Common Equity will be:
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