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Financial Statement Item Amount Balance Sheet Cash $20,000 Accounts Receivable $15,000 Income Statement Revenue $50,000 Expenses $35,000 Requirements: Prepare a balance sheet and income statement.
| Financial Statement | Item | Amount |
|---|---|---|
| Balance Sheet | Cash | $20,000 |
| Accounts Receivable | $15,000 | |
| Income Statement | Revenue | $50,000 |
| Expenses | $35,000 |
Requirements:
- Prepare a balance sheet and income statement.
- Calculate the net income.
- Analyze the liquidity and profitability ratios.
- Discuss the limitations of financial statement analysis.
- Recommend actions based on the analysis results.
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
