Question

The Baldwin's balance sheet has $106,554,000 in equity. Further, the company is expecting $3,000,000 in net income next year. Assuming no dividends are paid and no stock is issued, what would their Book Value be next year?

Answer 1

Answer:

Book value of equity = $109,554,000

Explanation:

Given:

Equity in balance sheet = $106,554,000

Net income = $3,000,000

Find:

Book value of equity

Computation:

Book value of equity = Equity in balance sheet + Net income

Book value of equity = $106,554,000 + $3,000,000

Book value of equity = $109,554,000