NEED ANSWER ASAP Q: USING THE BALANCE SHEET PROVIDED, WHAT IS THE AVERAGE OWNER'S EQUITY? EXPLAIN
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
NEED ANSWER ASAP
Q: USING THE
![Total Liabilities an Stock holder's Equity
LIADIUTIES
2021
Current Labilities
P125
Notes & Accs payable
тахес payable
P85
Other current liabilities
P81
Total Current
набићел
Long Term liabilities
TOTAL UABUTIE
STOCKHOLDER'S EQUITY
Stockholders Equity
Capital Stock, P5 per value,
100, 000 issuled and outstanding
chares
Retained Earnings
TOTAL STOCK HOLDER'S
EQUITY
TOTAL CABILITIES
AND
STOCKHOLDER'S EQUITY
292
Фиго
P 942.00
500
чого
169
P107
рати
f
358
P 858
P 1,800.00
P600
P
876.00
$ 500
If 274
$774
181,650.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8089908-361b-4392-862f-d5fd90a3ec30%2Fc8243482-f86d-418a-a043-5203929c01b7%2Fgjk8wf_processed.jpeg&w=3840&q=75)
![ASSETS
Current Assets
cash
Marketable Secuntier
Accounts Receivable
Merchandise Inventory
Other Current Assets
Total Current Assets
2021
120
p45
210
€ 150
P 80
1605.00
P210
If 1,129
| 120
#
Fixed Accets
Land
Building
Furniture a pixtures
Store & office tauipments
Total
less Accumulated Deprelation
Total Assets
20 20
P150
€ 15
| f
*
96
1555
3100
Total Fixed Acets $1,195
180
[12
42
P519
120
1209
+98
1.471
300
91, 131
P1,800.00 $1,650.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8089908-361b-4392-862f-d5fd90a3ec30%2Fc8243482-f86d-418a-a043-5203929c01b7%2Fpclnhml_processed.jpeg&w=3840&q=75)
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