each of the following independent situations represents amounts shown on the four basic financial…

each of the following independent situations represents amounts shown on the four basic financial statements. fill in the missing blanks using your knowledge of amounts that appear on the financial statements. note: negative amounts should be indicated by a minus sign. 1. revenues = $22,400; expenses = $15,900; net income = 2. increase in stockholders equity = $25,000; issuance of common stock = $9,000; dividends = $3,400; net income = 3. assets = $20,000; liabilities = $9,000; stockholders equity = 4. total change in cash = +$21,000; net operating cash flows = +$31,000; net financing cash flows = +$17,600; net investing cash flows =

each of the following independent situations represents amounts shown on the four basic financial statements. fill in the missing blanks using your knowledge of amounts that appear on the financial statements. note: negative amounts should be indicated by a minus sign. 1. revenues = $22,400; expenses = $15,900; net income = 2. increase in stockholders equity = $25,000; issuance of common stock = $9,000; dividends = $3,400; net income = 3. assets = $20,000; liabilities = $9,000; stockholders equity = 4. total change in cash = +$21,000; net operating cash flows = +$31,000; net financing cash flows = +$17,600; net investing cash flows =

Answer

Explanation:

Step1: Calculate net income for situation 1

Net income is revenues minus expenses. So, Net income = Revenues - Expenses. Net income = $22400 - 15900=$6500$

Step2: Calculate net income for situation 2

The change in stockholders' equity is due to issuance of common - stock, net income and dividends. The formula is: Increase in stockholders' equity=Issuance of common stock + Net income - Dividends. Rearranging for net income gives: Net income = Increase in stockholders' equity - Issuance of common stock+Dividends. Net income = $25000 - 9000+3400=$19400$

Step3: Calculate stockholders' equity for situation 3

According to the accounting equation, Assets = Liabilities+Stockholders' equity. Rearranging for stockholders' equity gives: Stockholders' equity = Assets - Liabilities. Stockholders' equity = $20000 - 9000=$11000$

Step4: Calculate net investing cash flows for situation 4

The total change in cash is the sum of net operating, net financing and net investing cash flows. The formula is: Total change in cash=Net operating cash flows+Net financing cash flows+Net investing cash flows. Rearranging for net investing cash flows gives: Net investing cash flows = Total change in cash - Net operating cash flows - Net financing cash flows. Net investing cash flows = $21000 - 31000 - 17600=-$27600$

Answer:

  1. $6500
  2. $19400
  3. $11000
  4. -$27600