Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required: Using the following table and the equations underlying each of the four basic financial statements, show (a) that the balance sheet is in balance.
Required: 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, (a what caused changes in the retained earnings account, and (c) what caused changes in the cash account. (Cash outflows should be indicated with a minus sign.) Assets $ 81,000 Liabilities 19,250 Stockholders' Equity 61,75 Revenue 33,600 Expenses 19,700 Net Income 13,900 Dividends 4,800 Beginning Retained Earnings 22,800 Ending Retained Earnings 31,180 Cash Flows from Operating Activities 17,200 Cash Flows from Investing Activities (8,700) Cash Flows from Financing Activities (6,85e) Beginning Cash 4.700 Ending Cash 7.150 a. Liabilities Assets + Stockholders' Equity 9,200 b. Net Income = Revenue - Expenses $ 1 300 $ 10,500 $ Ending RE = Beginning RE . Net Income -- Dividends 5 4,300 $ 3,500 $ 1,300 Ending Cash Beginning Cash + Revenue + Assets + Net Income $ 700 s 1,600 $ 1,000+ s 500 s 900 + $ 1,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started