Brief Exercise 1-7

Indicate which statement you would examine to find each of the following items: income statement, balance sheet, retained earnings statement, or statement of cash flows.

Brief Exercise 1-8

Use the basic accounting equation to answer these questions.


(b) The total assets of Laven Company are $186,000 and its stockholders equity is $88,900. What is the amount of its total liabilities?

(c) The total assets of Peterman Co. are $939,000 and its liabilities are equal to one fourth of its total assets. What is the amount of Peterman Co. s stockholders equity?