Balance Sheet
These go on your balance sheet to show things or resources a company owns.
Assets
What is the final number you want to end up with on the income statement?
Net Income
Which 2 accounts make up Stockholders' Equity?
Retained Earnings & Common Stock
Assets = Liabilities + ?
Stockholders' Equity
If revenues are $50,000 and expenses are $35,000, what is net income?
$15,000
What 2 accounts make up retained earnings?
Net income & Dividends
This type of asset includes things like patents and trademarks.
Intangible assets.
Which account on the income statement represents the cost a company has for products that are sold to customers?
Cost of Goods Sold
If beginning retained earnings are $40,000, net income is $10,000, and dividends are $2,000, what are ending retained earnings?
$48,000
If total assets are $250,000 and total liabilities are $160,000, what is stockholders’ equity?
$90,000
Is interest expense an operating expense?
How do expenses affect the statement of S/E?
Decrease net income resulting in a decrease of S/E.
Which of the following would increase assets and liabilities?
a) Purchasing inventory with cash
b) Buying a lawnmower on account
c) Distributing dividends with cash
d) Paying off accounts payable with cash
b) Buying a lawnmower on account
Given the following information, what is Gross Profit?
Sales Revenue - 400,000
Accounts Receivable - 250,000
Ending Inventory - 50,000
Cost of Goods Sold - 300,000
Sales Returns - 30,000
70,000
What is the total stockholders' equity with the following information:
Common Stock - 100,000
Cash - 70,000
Net Income - 120,000
Dividends - 10,000
Accounts Payable - 35,000
$210,000