Question

Each of the following independent situations represents amounts shown on the four basic financial statements. Fill in the formulas and missing blanks using your knowledge of amounts that appear on the financial statements. 1. Revenues = $26,000; Expenses = $17,500; Net income = 2. Increase in stockholders' equity = $15,000; Issuance of common stock = $12,000; Net income = $11,500; Dividends = 3. Assets = $23,500; Stockholders' equity = $16,000; Liabilities = 4. Total change in cash = $25,000; Net operating cash flows = $33,000; Net investing cash flows = ($16,000); Net financing cash flows Assets - Expenses = Net Income Assets - Liabilities = Net Income Revenue - Expenses = Net Income Revenue - Liabilities = Net Income

fill out chart with information provided
thankyou

Answer 1

1. Net income = Revenues – expenses = 26,000 – 17,500 = $ 8,500

2. Change in stockholders equity = issue common stock + net income – dividends

Or, dividend = 12000 + 11,500 – 15000 = $ 8,500

3. Liabilities = Assets – Liabilities = 23,500 – 16,000 = $ 7,500

4. Total change in cash = operating cash flows + investing cash flows +financing cash flows

Or, financing cash flows = 33000 + 16000 – 25000 =$ 24,000