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| Save & Edt 11 Submit | Questlon 5 (of ) 2.00 points stuations represents amoun

ID: 2336975 • Letter: #

Question

| Save & Edt 11 Submit | Questlon 5 (of ) 2.00 points stuations represents amounts shown on the four basic financial statements. Fillin the formulas and missing blanks using your knowledge of amounts that appear on the fnancial statements 1. Revenues-$26,600; Expenses $17,800; Net income 2. Increase in stockholders equity- $15,000; Issuance of common stock -$12,000; Net income- $11,800: Dividends-N 3. Assets $23,800; Stockholders' equity- $16,000; Liabilities- 4. Total change in cash - $25,600; Net operaing cash fows $33,600; Net investing ash fows (516,600) Nt Rinancing cash hows 1. Revenue-Expenses Net Income 26,600 7,800 s 8,800 2 Change in Stockholders' Equity Issue Common Stock-Net Income Dividends 15,000S 12,000 1.800 abiliies Assets+ 23,800- s 7.800 16.000 Change in Cash Operating Cash Flows+Investing Cash Flows Financing Cash Flows 25,600 s 33,600+ 21 PDF

Explanation / Answer

Answer for 1)

Net income:revenues expenses

=$26000-$17800=$8800

Answer for 2)

Increase in shareholders equity:issuance of common stock+net income-dividends

This is because common stock issuance and net income are added to paid up capital whereas dividends are paid from net income and hence leads to decrease in shareholders equity.

=>Dividends:issuance of common stock+net income-increase in share holders equity

=$12000+$11800-$15000=$8800

Answer for 3)

Assets:shareholders equity+liabilities

=liabilities:assets-shareholders equity

=$23800-$16000=$7800

Answer for 4)

Total change in cash:net operating cash flows+net investing cash flows+net financing cash flows

Net financing cash flows:Total change in cash-net operating cash flows-net investing cash flows

=$25600-$33600-(-16600)

=$8000