Metric Analysis of Transactions SLO Health Care Inc. is owned and operated by Morgan Denby, the sole stockholder. The account balances after all of the month's transactions were recorded appear on the integrated financial statement framework below. Financial Statement Effects Remaining column numbers from the top bar (only Balances provided): Common stock Balance: $30,000 Retained Earnings Balance: $124,250 MARIA Balances Cash + Receivable 18,500. 32,250 Adjustments Jan. 31 Insurance expired 31 Supplies expense Adjustment data for SLO Health Care Inc. for January are as follows: 1. Insurance expired, $450. 2. Supplies on hand on January 31, 5600, 3. Depreciation on building, $1.150. 4. Unearmed rent revenue earned, $1,500. 5. Wages owed employees but not paid, $1,450. 6. Services provided but not billed to patients, $2,500. Metric Effects 31 Depreciation expense 31 Rent revenue 31 Wages experie 31 Fees earned Total Insurance + Supplies 4 Building 1,500 3,350 1,500 X -1,450 X 2,500 ✓ 1,550 X $ Liquidity Quick Assets Profitability -450 x S -900 X 1,150 X x x x x 75,000 x 2,500 M 2,500 X C Depreciation -5,600 Land ridicate the effects of each adjustment on the liquidity metric Quick Assets and profitability metric Net Tecome - Accrual Basis. Enter account decreases and cash outflows as negative amounts. If an amount box does n leave it blank. 4 60,000 Payable + 2.250 Revenue 13,500 + Payable O Payable 15,000
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.
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