Inferring Values by Using the Statement of Earnings and Statement of Financial Position Equations LO1-1 Review the chapter explanations of the statement of earnings and the statement of financial position equations. Apply these equations in each independent case to compute the two missing amounts for each case. Assume that it is the end of 2021, the first full year of operations for the company. (Hint:

Organize the listed items as they are presented in the statement of financial position and statement of earnings equations and then compute the missing amounts.)

As a creditor how would you use this information to decide whether or not to lend $50,000, repayable over five years, to either Company B or Company C?

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Net Independent Cases Total Revenues Total Expenses Earnings Total (Loss) Total Assets Liabilities Shareholders' Equity A $91,700 $76.940 $140,200 $69,000 B 74,240 $14,740 107,880 $79,010 C 69,260 76,430 97,850 69.850 D 58,680 21,770 17,890 78,680 E 84,840 78,720 25.520 79,580