31 Jan 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$79,500Beginning Retained Earnings$20,500Liabilities18,500Ending Retained Earnings28,750Stockholders’ Equity61,000Cash Flows from Operating Activities15,700Revenue32,100Cash Flows from Investing Activities(7,200)Expenses18,950Cash Flows from Financing Activities(5,300)Net Income13,150Beginning Cash3,200Dividends4,900Ending Cash6,400
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