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Below is the balance sheet for Glucose Control Company as of Dec. 31, 2019. The...

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Finance

Below is the balance sheet for Glucose Control Company as of Dec. 31, 2019. The company reported an annual net income of $88,000 for the following year, 2020, and did not change its assets or liabilities, unless otherwise noted.

Assets Liabilities and Equity
Cash 14,000 Accounts payable 16,000
Marketable securities 2,000 Notes payable 6,000
Accounts receivable 4,000 Current liabilities 22,000
Inventory 35,000 Long-term debt 95,000
Current assets 55,000 Total liabilities 117,000
Machines 34,000 Paid-in capital 20,000
Real estate 80,000 Retained earnings 32,000
Net fixed assets 114,000 Total equity 52,000
Total assets 169,000 Total liab. & equity 169,000

Part 1: If the company distributed its entire net income as dividends, what would be the value of total equity on Dec. 31, 2020?

Part 2: If the company distributed half of its net income as dividends and used the rest to invest in new machines, what would be the amount of Total equity on Dec. 31, 2020?

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