$34 EXPLORING BUSINESS Stress-Buster Company Income Statement Month Ended September 30, 20X1 $1,000 600 400 Sales (100 x $10) Less cost of goods sold (100 x 56) Gross profit (100 X 54) Less operating expenses Salaries Advertising Table rental Net income (profit) 240 40 20 300 $100 Net income for the month is also on the Statement of Owner's Equity as an addition to the beginning Owner's equity balance. This addition of $100 increases the balance in Owner's equity from $200 to $300: Stress-Buster Company Statement of Owner's Equity As of September 30, 2011 Owner's equity, September 1, 20X1 + Net income $200 100 Owner's equity, September 30, 20X1 $300 The ending Owner's equity balance of $300 also appears on the Balance Sheet as Owner's equity: Stress-Buster Company Balance Sheet As of September 30, 20X1 Exercises 1. (AACSB) Analysis Describe the information provided by each of these financial statements: income statement, balance sheet, statement of owner's equity. Identify ten business questions that can be answered by using financial accounting information. For each question, indicate which financial statement or statements) would be most helpful in answering the question, and why