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Compute the missing amounts for each company. Willow Ltd. Moss Inc. Chip Cerp. Beginning Assets $ 80 $ 29 Liabilities 49 19 2 Common shares
Compute the missing amounts for each company. Willow Ltd. Moss Inc. Chip Cerp. Beginning Assets $ 80 $ 29 Liabilities 49 19 2 Common shares 6 1 2 Retained earnings 9 4 Ending Assets $48 $ 11 Liabilities 50 32 Common shares 6 1 2 Retained earnings 26 5 Dividends $ 5 6 $ 0 Income statement Revenues $222 $ 27 Expenses 216 138 26 Net income 12 1 Part 2 Requirement 2. What two line items above would be most relevant to determining which company is the largest? Why? Assets and Cash Assets and Revenues Assets and Liabilities Common Shares and Dividends are the two lines items that are most relevant for determining the relative sizes of companies. A company's total assets common shares total liabilities total retained earnings are a measure of how much resources it has to deploy to earn revenues, so a company with more assets common shares liabilities retained earnings revenues will generally have more resources to deploy in the form of inventory, buildings, and equipment. Assets Cash Retained earnings Revenues report how much a company was able to sell in goods and services during the period, so a company with
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