Maben Company was started on January 1 2018 and experienced

Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation:

Acquired $35,000 cash from the issue of common stock.

Borrowed $47,000 cash from National Bank.

Earned cash revenues of $63,000 for performing services.

Paid cash expenses of $52,500.

Paid a $2,500 cash dividend to the stockholders.

Acquired an additional $35,000 cash from the issue of common stock.

Paid $12,000 cash to reduce the principal balance of the bank note.

Paid $46,000 cash to purchase land.

Determined that the market value of the land is $64,000.

Determine the percentage of assets that were provided by investors, creditors, and earnings. (Round your answers to 2 decimal places.) Just need investors and Earnings please

Solution

Firstly we need to calculating ending cash balance for calculating total assets at the end which is shown as follows:-

  Calculation of Ending Cash Balance (Amounts in $)

Total assets = Land+Cash

= $46,000+$67,000 = $113,000

Ending balance of Common Stock = $35,000+$35,000 = $70,000

Ending Balance of Bank Note = $47,000 - $12,000 = $35,000

Retained Earnings balance = Revenues - Expenses - Dividends

= $63,000 - $52,500 - $2,500 = $8,000

Investors % of Assets = Common Stock/Assets

= $70,000/$113,000 = 61.95%

Creditors % of Assets = Borrowings from Bank/Assets

= $35,000/$113,000 = 30.97%

Earnings % of Assets = Retained Earnings/Assets

= $8,000/$113,000 = 7.08%