Question
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.
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.
c. what caused the change in retained earnings.
d. what caused the change in the cash account.
Reporting Amounts on the Four Basic Financial Statements:
Assets - $16,200.00
Liabilities - $13,750.00
Stockholders Equity - $2,450.00
Revenue - $10,500.00
Expenses - $9,200.00
Net Income - $1,300.00
Dividends - $500.00
Beginning Retained Earnings - $3,500.00
Ending Retaining Earnings - $4,300.00
Cash Flows from Operating Activities - $1,600.00
Cash Flows from Investing Activities - $(1,000)
Cash Flows from Financing Activities - $(900.00)
Beginning Cash - $1,00.00
Ending Cash - $700.00
a. balance sheet
Balance Sheet
Assets Total Liabilities Total
Stockholders' Equity
Total Assets $__ Total L+SE $__
b. Net income is properly calculated.
Revenues Total
Less Expenses
Net Income $ _____
c. What caused change in the Retained Earnings Account
Total
Beginning Retained Earnings
Net Income (add)
Dividends (decuct) $___________
d. What caused changes in the Cash Account
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Beginning Cash
Ending Cash $________________
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