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 changes in the retained earnings account, and (d) what caused changes in the cash account. (Cash outflows should be indicated with a minus sign.) Assets $ 20,000 Liabilities 14,650 Stockholders Equity 5,350 Revenue 12,300 Expenses 10,100 Net Income 2,200 Dividends 900 Beginning Retained Earnings 5,300 Ending Retained Earnings 6,600 Cash Flows from Operating Activities 3,400 Cash Flows from Investing Activities (2,800 ) Cash Flows from Financing Activities (1,800 ) Beginning Cash 2,800 Ending Cash 1,600
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