Retained Earnings

Prepare a statement of earnings, a statement of retained earnings, and a balance sheet.Explain the relationship between financial statements and why it is useful for managers to understand all three.

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Statement of earnings and retained earnings. Various balance sheet and statements of earnings accounts for Home Restoration Outlet Ltd. are listed below in random order. Determine which account goes in which statement to solve the questions. The balance sheet accounts are as of December 31, 2005, except as noted. The statement of earnings amounts are … Read more

Perform 2 different types of ratio analysis.

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Income Statement Revenues:   28,000 Less: Operating Expenses Rent Expense 1,200 Salaries Expense 4,500 Utilities Expense 300 Insurance Expense 100 Supplies Expense 400 Depreciation Expense 500 7,000 7,000 21,000 Balance Sheet Assets: Cash 101,800 Accounts Receivable 20,000 PP In 1,100 Supplies 2,600 Equipment 55,000 Accumulated Depreciation (500) Total Assets 180,000 Liabilities and Stockholders’ Equity Liabilities: … Read more