Question 6 0.2 pts The elements of a balance sheet include assets, liabilities, and stockholders' equity. According to page 1-5 of the VLN, total assets for the Smith Construction Balance Sheet at December 31 are: Question 7 0.2 pts The statement of cash flows shows the cash inflows and outflows related to the three business activities we measure in accounting (operating, investing and financing). According to page 1-6 of the VLN what was the amount of net cash flows from Operating activities for Lincoln Trade? The Balance Sheet (B5) (aka, The statement of Financial Position) Example of a heading for a balance sheet A, Inc Balance Sheet At June 30, 20XB lin thousands of dollars) "AT" ELEMENTS OF THE BALANCE SHEET Assets (A) Owned by the company as a result of past transactions. - Economic resources expected to provide future benefits to the company -Examples: Cash, Equipment, Buildings Liabilities (L) -Owed by the company as a result of past transactions. Future daims on economic resources (either assets or services) of the company. -Examples: Notes payable, Salaries payable Stockholders' Equity (SE) Stockholders' Equity results from two basic categories: Common Stock (CS) Retained Earnings (RE) THE ACCOUNTING EQUATION (Balance Sheet Equation) A = L + SE CS + RE Assets = Liabilities + Stockholders' Equity Economic resources = Sources of financing What you have where it came from or A-L=SE Net assets = Owners' equity or Owners claim to resources Practice: Smith Construction has the following account balances at the end of the year Equipment Accounts payable Common stock Land Supplies Long-term debt Cash Retained earnings $21,000(A) 2,100(L) 10,000(se) 13,000(A) 100(A) 15,ODD(L) 5,000(A) 2 Determine Retained earnings, Total assets, Total Liabilities and Total Stockholders' Equity by preparing the balance sheet at the end of the year. Assets Cash $5,000 100 Supplies equipment 21,000 13,000 Smith Construction Balance Sheet At December 31, 20XC Liabilities Accounts payable $2,100 Long term debt 15,000 Total liabilities $17,100 Stockholders' Equity Common stock $10,000 Retained earnings 12,000 Total stockholders' equity 22,000 Total liabilities and stockholders' equity $39,100 land Total assets $39,100 The Statement of Cash Flows Categories: OPERATING ACTIVITIES INVESTING ACTIVITIES FINANCING ACTIVITIES Combining the three categories of net cash inflows and outflows indicates the change in CASH during the period. Question 6 0.2 pts The elements of a balance sheet include assets, liabilities, and stockholders' equity. According to page 1-5 of the VLN, total assets for the Smith Construction Balance Sheet at December 31 are: Question 7 0.2 pts The statement of cash flows shows the cash inflows and outflows related to the three business activities we measure in accounting (operating, investing and financing). According to page 1-6 of the VLN what was the amount of net cash flows from Operating activities for Lincoln Trade? The Balance Sheet (B5) (aka, The statement of Financial Position) Example of a heading for a balance sheet A, Inc Balance Sheet At June 30, 20XB lin thousands of dollars) "AT" ELEMENTS OF THE BALANCE SHEET Assets (A) Owned by the company as a result of past transactions. - Economic resources expected to provide future benefits to the company -Examples: Cash, Equipment, Buildings Liabilities (L) -Owed by the company as a result of past transactions. Future daims on economic resources (either assets or services) of the company. -Examples: Notes payable, Salaries payable Stockholders' Equity (SE) Stockholders' Equity results from two basic categories: Common Stock (CS) Retained Earnings (RE) THE ACCOUNTING EQUATION (Balance Sheet Equation) A = L + SE CS + RE Assets = Liabilities + Stockholders' Equity Economic resources = Sources of financing What you have where it came from or A-L=SE Net assets = Owners' equity or Owners claim to resources Practice: Smith Construction has the following account balances at the end of the year Equipment Accounts payable Common stock Land Supplies Long-term debt Cash Retained earnings $21,000(A) 2,100(L) 10,000(se) 13,000(A) 100(A) 15,ODD(L) 5,000(A) 2 Determine Retained earnings, Total assets, Total Liabilities and Total Stockholders' Equity by preparing the balance sheet at the end of the year. Assets Cash $5,000 100 Supplies equipment 21,000 13,000 Smith Construction Balance Sheet At December 31, 20XC Liabilities Accounts payable $2,100 Long term debt 15,000 Total liabilities $17,100 Stockholders' Equity Common stock $10,000 Retained earnings 12,000 Total stockholders' equity 22,000 Total liabilities and stockholders' equity $39,100 land Total assets $39,100 The Statement of Cash Flows Categories: OPERATING ACTIVITIES INVESTING ACTIVITIES FINANCING ACTIVITIES Combining the three categories of net cash inflows and outflows indicates the change in CASH during the period