a. The assets of a corporation total $10,000; the liabilities, $4,000. The claims of the owners a

a. The assets of a corporation total $10,000; the liabilities, $4,000. The claims of the owners are .

b. The Aesop Company has total assets of $1,000,000 and total liabilities of $600,000. The common stockholders have explicitly invested $100,000 in the firm. Since organization, the firm has paid cash dividends of $800,000.

a. What have the total earnings been since organization?

b. If the stockholders had explicitly invested $700,000 but if all other facts were unchanged, what would be the total earnings since organization?

 

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