Grape Corp.. compiled the following financial information as of December 31, 2018 (in absolute numbers): Accumulated depreciation, equipment Cash and cash equivalents Common stock Cost of goods sold Dividends Equipment Inventory Interest payable Investments Note payable due within 6 months Rent expense Retained earnings, 1/1/18 Sales revenue Salary payable Selling, general and administrative expenses Supplies Grape Inc.'s total assets on December 31, 2018 are O $934,500 O $1,011.250 O $960,750 O $977.500 33,750 375,000 282,750 506,250 18,750 263,250 296,250 75,000 60,000 67,500 63,000 448,000 675.000 92,250 75,000 16.750
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
![Grape Corp.. compiled the following financial information as of December 31, 2018 (in absolute
numbers):
Accumulated depreciation, equipment
Cash and cash equivalents
Common stock
Cost of goods sold
Dividends
Equipment
Inventory
Interest payable
Investments
Note payable due within 6 months
Rent expense
Retained earnings, 1/1/18
Sales revenue
Salary payable
Selling, general and administrative expenses
Supplies
Grape Inc.'s total assets on December 31, 2018 are
O $934,500
O $1,011.250
O$960,750
O $977.500
33,750
375,000
282,750
506,250
18,750
263,250
296,250
75,000
60,000
67,500
63,000
448,000
675.000
92,250
75,000
16.750](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2609500c-c8f4-4c68-b56b-3335d2d4bdb4%2Fe0831a6b-1e51-4fbf-bd4e-8ed12016c9a3%2Foz9zy5x_processed.jpeg&w=3840&q=75)
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