1/ The amount of owners' equity in a business is not affected by:

The amount of dividends paid to stockholders.

• The investments made in the business by the owner.

• The profitability of the business.

• The percentage of total assets held in cash.

2 A strong statement of financial position shows:

That profits are being generated by operations.

• That cash is being generated by operations.

• Large amounts of liquid assets relative to the liabilities due in the near future.

• Large amounts of debt relative to stockholders equity.