Unformatted text preview: specified sales target to ensure that the budgeted revenue figures are met, and that the expenses are maintained at a certain budgeted level. The Statement of Owners’ Equity reports information about how equity changes over the reporting period. This statement shows beginning capital, events that increase it (owner investments and net income), and events that decrease it (withdrawals and net loss). Ending capital is computed in this statement and is carried over and reported on the balance sheet. This ending capital is the most valuable information since it is carried over to the Balance Sheet as the figure in Retained Earnings – which are the funds the company retains and does not distribute as dividends so that the company’s management can plan for future expansions....
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This note was uploaded on 01/24/2012 for the course ACC 220 ACC 220 taught by Professor Black during the Spring '11 term at University of Phoenix.
- Spring '11