Financial statements are the primary means of communicating financial information to users. It is important to have a firm understanding of the income statement, balance sheet, and statement of cash flows. Managers will make decisions daily that will have an effect on the elements of the accounting equation: Assets = Liabilities + Owners' Equity. Managerial accounting reports use these same financial statements but also incorporate non-financial information that will assist internal users in making strategic and tactical decisions. For this reason, it is important for you to understand how decisions will affect the accounting equation.

The following spreadsheet is for Manhattan Family Dentistry on January 1 of the current year.

MANHATTAN FAMILY' DENTISTRY

Balance Sheet

January 1 , 20

ASSETS

Liabilities & Stockholders' Equity

Cash

Liabilities`

ACCOUNTS receivable*

Accounts payable

Land

Building*

Total liabilities .

CIVETS' Equity* "

Equipment . .

25. 000

Capital stock

Total ASSETS*

Total liabilities and owners' Equity

`Juring the first few days of January, the following transactions OCCUPIED

5^`

Equipment was purchased for $3}, DOO on credit.

The business collected $1GOOD Of it's accounts receivable and paid $ 23. OOD Of its

accounts payable.

The business borrowed FOOD, AND from the bank, giving a note payable QUE in SO day's .

Additional capital stock was issued in exchange for DZT, QOD cash .

Complete the following balance sheet for Manhattan Family Dentistry on January 4 of the current year.

Based on the information recorded in the balance sheet you completed in Submission Lesson - 1, what non-financial information could be requested for a managerial report to be used for internal decision making?