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Unformatted text preview: Financial statements summarize the financial activities of the business. All together this will give us a picture of what the firm is doing, whether its profitable, and more. Accounting Equation ASSETS= LIABILITIES + EQUITY-Liabilities represent the claims to those assets. Using Financial Statements: Creditors-Is the company generating enough cash to make payments on its loans?-Does the company have enough assets to cover its liabilities? External Financial Reporting: Main goal: provide useful financial information to external users for decision making In Class Problem #1 Answer: NET SALES $68,520 COST OF GOODS SOLD ($52,567) OPERATING EXPENSES ($12,910) RENTAL INCOME $741 INCOME TAX $1207 INTERST COSTS $241 In class Problem #2:...
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This note was uploaded on 02/03/2011 for the course ACTG 210 taught by Professor Staff during the Spring '08 term at Ill. Chicago.
- Spring '08
- Financial Accounting