Concept explainers
Missing amounts from financial statements Obj.4
The financial statements at the end of Paradise Reaky’s first month of operations are shown
2. By analyzing the interrelationships among the financial statements, determine the proper amounts for (a) through (o).
Introduction:
Financial Statements:
It is a set of records of all financial activities of a business entity prepared by the management that shows the ability of the business entity in utilizing the funds entrusted by the stockholders and lenders.
To calculate:
The wages expense and net income in income statement of company X, dividend and retained earnings closing balance in statement of stockholder's equity, balances of land, stock holder's equity and total liabilities and stockholder's equity as shown in balance sheet of company X. Also, to calculate cash received from customers, net cash flow from operating activities, net cash flow from financing activities, net increase in cash during month ended November 30, 20Y3 and cash as on November 30, 20Y3 as shown in statement of cash flows.
Answer to Problem 1.2.2P
Income Statement of company X
- Wages expense - $29850
- Net Income - $80000
- Net Income- $80000
- Dividends- $36000
- Retained Earnings total = $44000
- Land- $216000
- Total assets- $321200
- Common stock- $270000
- Retained earnings- $44000
- Total stockholder's equity- $314000
- Total liabilities and stockholder's equity- $321200
- Cash received from customers- $149300
- Net cash flow from operating activities- $81200
- Net cash flow from financing activities- $234000
- Net increase in cash during the month - $99200
Statement of stockholders' equity
Balance Sheet
Statement of cash flows
cash as on November 30, 20Y3
Explanation of Solution
Calculation of missing amounts in financial statements of company X:
Income Statement of company X
Statement of stockholder's equity of company X
Balance Sheet:
Statement of Cash flows
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