Mel Wk6 Ckpt Bellwether Financial Statements

Mel Wk6 Ckpt Bellwether Financial Statements - Exercise 7-1...

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Exercise 7-1 1. The total assets are: $499,758.76 2. The total capital is: $318,982.44 3. Indicate the amount of the net income or net loss for the month of March: ($3,157.59) net loss 4. The current month’s gross profit is: $64,719.54 5. The current month’s total expenses are: $67,877.13 The balance sheet shows the financial position of a company for a specific period of time and the income statement shows the revenues and expenses for a specific period. One can compare the information in a balance sheet and use it to determine if a company has enough liquidity to cover liabilities and capital if need be. Take for instance questions one and two in comparing total assets to total capital we know that the company has enough assets to cover capital. The income statement can be used to determine if enough revenue was made to cover expenses for the period and is used to maintain budgets as well as a comparison from month to month to figure out when sales are slow for a company. By looking at the net loss, the month’s gross profit, and the
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Mel Wk6 Ckpt Bellwether Financial Statements - Exercise 7-1...

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