(a)
Introduction:
Financial statements are a complete record of the financial transactions that takes place in a company at a particular point of time. It provides important financial information like assets, liabilities, revenues and expenses of the company to its internal and external users. It helps them to know the exact financial position of the company. There are four basic financial statements as shown in the figure below:
Basic Financial Statements
Figure (1)
To Interpret: Financial facts regarding retained earnings statement.
Given: Dividends declared was $68,000 and net income was $75,000.
(b)
Introduction:
Statement of
To Interpret: Financial facts regarding cash flow statement.
Given: Cash provided by operating activities was $10,000; cash used in the investing activities was $110,000; and cash provided by financing activities was $130,000.
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Financial Accounting
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