Answer the following questions: a. How well did ShineBrite perform during its fi rst month of operations?

Question:

Answer the following questions:

a. How well did ShineBrite perform during its fi rst month of operations?

b. Where does ShineBrite stand fi nancially at the end of April?

❙ Requirement 2

a. ShineBrite performed rather well in April. Net income was $7,300—very good in relation to service revenue of $10,000. The company was able to pay cash dividends of $2,100.

b. ShineBrite ended April with cash of $33,300. Total assets of $57,000 far exceed total liabilities of $1,800. Shareholders’ equity of $55,200 provides a good cushion for borrowing. The business’s fi nancial position at April 30, 20X6, is strong.

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Financial Accounting International Financial Reporting Standards

ISBN: 9780273777809

1st Global Edition

Authors: Walter T Harrison, Charles Horngren, Bill Thomas, Themin Suwardy

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