
Concept explainers
Concept Introduction:
Income statement: An income statement can be defined as the statement explaining the company’s financial performance over a specific accounting period. The income or revenues are recorded on the income statement along with the expenses incurred for the period.
Cash Flow statement: A Cash flow statement is a statement which shows the inflow and outflow of the cash and cash equivalent during an accounting period.
Requirement 1-
To explain:
The purpose of statement of
Requirement 2-
To prepare:
The Income statement for the year ended December 31, 2016.
Requirement 3-
To prepare:
The Balance sheet at December 31, 2016.
Requirement 4
To prepare:
The Statement of cash flows for the year ended December 31, 2016.

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Chapter 16 Solutions
Horngren's Accounting, The Financial Chapters (11th Edition) - Standalone Book
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