21 Mar Reporting Amounts on the Four Basic Financial Stat
Reporting Amounts on the Four Basic Financial StatementsUsing 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.Assets$18,200Beginning Retained Earnings$3,500Liabilities13,750Ending Retained Earnings4,300Stockholders’ Equity4,450Cash Flows from Operating Activities1,600Revenue10,500Cash Flows from Investing Activities(1,000)Expenses9,200Cash Flows from Financing Activities(900)Net Income1,300Beginning Cash1,000Dividends500Ending Cash700
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