Are You Ready for Corporate Finance? Step 1: Assess your knowledge Topic 3 of 5: Financ - Inventories are reported on the: balance sheet as an asset. N O cash flow statement as part of the cost of goods sold. w income statement as a cash flow from operating activities. e statement of retained earnings. Step 1: Assess your knowledge Topic 3 of 5: Financial Statement Fundamentals for Finance 1 2 ronowing is a simple income statement. Mauch each term WILIT ILS u down list of choices. nion om te urop- Income Statement (Thousands of dollars) Year 1 AN $ Revenues (Sales) - Cost of Goods Sold - Operating expenses Operating income (EBIT) - Interest expense Taxable income 7,000 (2,781) (1,809) 2,410 (190) $ 2,220 (434) - Taxes Net income 1.786 Income Statement (thousands of dollars) Year 1 Revenues (Sales) -Cost of Goods Sold -Operating Expenses Operating income (EBIT) Interest expense $ 7,000 (2,781) (1,809) $ 2,410 (190) Taxable income -Taxes $ 2,220 (434) $ 1,786 Net income The following is a list of accounts commonly seen in financial statements. Identify whether each account appears on the balance sheet as an asset, a liability, or an equity account, or whether it appears on the income statement as a revenue or an expense. Account Accounts Payable Property, plant, and Equipment Inventories Long-Term Debt Cost of Goods Sold Retained Earnings Research and Development Prepaid Expense Common Stock Accounts Receivable