Exercise 7 1 1 The total assets are 500 015 61 2 The total capital is 318 987 48 3 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 54 5 The current month s total expenses are 67 872 09 The 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 2 1 The current month s net cash provided by operations is 35 193 42 2 The year to date s net cash provided by operations is 4 974 22 3 The cash balance at end of period for the current month is 35 193 31 4 The beginning retained earnings balance is 189 037 60 5 The ending retained earnings balance is 213 987 48 The information from the statement of cash flows is important to users because it shows where 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 feedback Some of your answers are off slightly which may be due to uncorrected mistakes from prior weeks The correct answers are 7 1 1 499 758 76 2 318 982 44 3 3 157 59 4 64 719 54 5 67 877 13 7 2 1 34 936 57 2 4 717 37 3 32 060 92 4 189 037 6 5 213 982 44
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