Concept explainers
a)
To discuss:
Effect of net income on
Introduction:
The balance sheet reveals the financial health of company by depicting the summary of available assets (both owner’s equity and outsider’s equity) from investing and owed liabilities of the firm from its financial activities at a given point of time.
b)
To discuss:
Effect of net income on balance sheet when C paid dividends of $500,000 and used rest of income to pay off long term debt.
Introduction:
The balance sheet reveals the financial health of company by depicting the summary of available assets (both owner’s equity and outsider’s equity) from investing and owed liabilities of the firm from its financial activities at a given point of time.
c)
To discuss:
Effect of net income on balance sheet when C paid dividends of $500,000 and used rest to build hangar.
Introduction:
The balance sheet reveals the financial health of company by depicting the summary of available assets (both owner’s equity and outsider’s equity) from investing and owed liabilities of the firm from its financial activities at a given point of time.
d)
To discuss:
Effect of net income on balance sheet when C used all the net income to pay dividends to stockholder.
Introduction:
The balance sheet reveals the financial health of company by depicting the summary of available assets (both owner’s equity and outsider’s equity) from investing and owed liabilities of the firm from its financial activities at a given point of time.
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