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Assets $ 18,600 Liabilities 13,950 Stockholders Equity 4,650 Revenue 10,900 Expenses 9,400 Net Income 1,500 Dividends 700 Beginning Retained Earnings 3,900 Ending Retained Earnings 4,700
Assets | $ | 18,600 | |
Liabilities | 13,950 | ||
Stockholders Equity | 4,650 | ||
Revenue | 10,900 | ||
Expenses | 9,400 | ||
Net Income | 1,500 | ||
Dividends | 700 | ||
Beginning Retained Earnings | 3,900 | ||
Ending Retained Earnings | 4,700 | ||
Cash Flows from Operating Activities | 2,000 | ||
Cash Flows from Investing Activities | (1,400 | ) | |
Cash Flows from Financing Activities | (1,100 | ) | |
Beginning Cash | 1,400 | ||
Ending Cash | 900 |
Using the following table and the equations underlying each of the four basic financial statements, show (a) that the balance sheet is in balance, (b) that net income is properly calculated, (c) what caused changes in the retained earnings account, and (d) what caused changes in the cash account. (Cash outflows should be indicated with a minus sign.)
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