Exercise 7-11. The total assets are: $500,015.612. The total capital is: $318,987.483. Indicate the amount of net income or (net loss) for the month of March: (3,152.55)4. The current month’s gross profit is: $64,719.545. The current month’s total expenses are: $67,872.09The total assets are what the company owns during an accounting period and helps creditors and investors determine the financial health of the company. The capital shows investors how much common stock there is and how much capital is paid and how much the company holds back in retained earnings.The information from the income statement shows users the activity of the company. Gross profits and expenses are important because profit – expenses gives the net income or loss for the accounting period.Exercise 7-21. The current month’s net cash provided by operations is: $35,193.422. The year-to-date’s net cash provided by operations is: $4,974.223. The cash balance at end of period for the current month is: $35,193.314. The beginning retained earnings balance is: $189,037.605. The ending retained earnings balance is: $213,987.48The information from the statement of cash flows is important to users because it showswhere the cash came from, what the cash was used for, and the overall changes in cash for the accounting period.The statement of retained earnings is important because it shows the lifetime earnings and all the losses and dividends of the company.Teacher feedbackSome of your answers are off slightly which2may be due to uncorrected mistakes from prior weeks.2The correct answers are:7-11. 499,758.762. 318,982.443. (3,157.59)4. 64,719.545. 67,877.137-21. 34,936.572. 4,717.373. 32,060.924. 189,037.65.
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