Home-myutrgvedu HomChp 1 HomeworkX+v m.tpx Using the following table and the equations underlying each of the four basic financial statements, show (a) hat the balance sheet is in balance, (b) that net income is properly calculated, (c) what caused changes in the retained earmings account, and (d) what caused changes in the cash account (Cash outlows should indicated with a minus sign.) Assets $81,200 19,350 61,850 33,800 19,800 14,000 4,900 22,200 1,300 Cash Flows from Operating Activities 17,400 Stockholders Equity Revenue Expenses Net Income Beginning Retained Earnings Retained Earnings Cash Flows from Investing Activities (8,900) Cash Flows from Financing Activitiles (6,150) Beginning Cash 4,900 7,250 Ending Cash HintsReferences eBook& Resources O Type here to search
Answer a. Assets = Liabilities + Stockholders\' Equity $81,200 = $19,350 + $61,850 $81,200 = $81,200 Answer b. Net Income = Revenue - Expenses $14,000 = $33,800 - $19,800 $14,000 = $14,000 Answer c. Ending Retained Earnings = Beginning Retained Earnings + Net Income - Dividends $31,300 = $22,200 + $14,000 - $4,900 $31,300 = $31,300 Answer d. Ending Cash = Beginning Cash + CF from Operating Activities + CF from Investing Activities + CF from Financing Activities $7,250 = $4,900 + $17,400 + $(8,900) + $(6,150) $7,250 = $7,250
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