Question

The statement of cash flows: Multiple Choice Presents the financial position of a company at a point in time. Indicates if a
Knowledge Check 01 Catalina Corporation begins the year with a $195,000 balance in Retained Earnings and a $320,000 balance i
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Answer #1

Question 1

Correct answer----------Shows the net change in cash over a period of time.

Balance sheet shows financial position of the company Income statement shows the difference between revenues and expenses.

Profitability of a company is not assured by cash flow statement

Question 2

Correct answer----------$584,000

Working

Beginning retained earnings $      195,000.00
Beginning common stock $      320,000.00
Total beginning stockholder's equity $      515,000.00
Add; Net income $         46,000.00
Add: Additional shares issued $         28,000.00
Less: Dividends $         (5,000.00)
Total Ending stockholder's equity $      584,000.00
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