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Assets: $1,200. Liabilities: $600. Equity: $600. Knowing that there were no dividends paid to investors, nor any changes from the issuance or repurchase of stock, we can simply subtract the...
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WebThe formula for calculating net income is: Revenue – Cost of Goods Sold – Expenses = Net Income. The first part of the formula, revenue minus cost of goods sold, is also the …
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WebThe statement of retained earnings will include beginning retained earnings, any net income (loss) (found on the income statement), and dividends. The balance sheet is going to …
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WebThe new accounting equation would show: Assets $89,300 (Cash $68,000 + Accounts Receivable $5,000 + Supplies $500 + Prepaid Rent $1,800 + Equipment $5,500 + Truck …
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Net income (NI) is calculated as revenues minus expenses, interest, and taxes. Earnings per share are calculated using NI. Investors should review the numbers used to calculate NI because expenses ...
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