Required: 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 Liabilities Stockholders' Equity Revenue Expenses Net Income Dividends Beginning Retained Earnings Ending Retained Earnings Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities. Beginning Cash Ending Cash $ 18,000 14,050 4,750 11,100 9,500 1,600 800 4,100 4,900 2,200 (1,600) (1,200) 1,600 1,000

Required: 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 Liabilities Stockholders' Equity Revenue Expenses Net Income Dividends Beginning Retained Earnings Ending Retained Earnings Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities. Beginning Cash Ending Cash $ 18,000 14,050 4,750 11,100 9,500 1,600 800 4,100 4,900 2,200 (1,600) (1,200) 1,600 1,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

ences
Required:
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
Liabilities
Stockholders' Equity
Revenue
Expenses
Net Income
Dividends
Beginning Retained Earnings
Ending Retained Earnings
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities i
Beginning Cash
Ending Cash
b
$ 18,000
14,050
4,750
11,100
9,500
1,600
800
4,100
4,900
2,200
(1,600)
(1,200)
1,600
1,000

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