Suppose that sales for the year caused the following changes in the company’s financial condition:
|
Condensed Balance Sheet |
||||
|
Cash |
+$3,000,000 |
|
Operating liabilities |
–$50,000 |
|
Receivables |
+$250,000 |
|
Interest-bearing liabilities |
|
|
Inventory |
|
|
Owners’ invested capital |
|
|
PP&E, net |
|
|
Owners’ retained earnings |
+$3,300,000 |
|
Assets |
+$3,250,000 |
= |
Liabilities and Owners’ Equity |
+$3,250,000 |
What is the composite effect on financial condition from the company’s profit-making activities for the year?
|
Condensed Balance Sheet |
||
|
Cash |
|
Operating liabilities |
|
Receivables |
|
Interest-bearing liabilities |
|
Inventory |
|
Owners’ invested capital |
|
PP&E, net |
|
Owners’ retained earnings |
|
Assets |
= |
Liabilities and Owners’ Equity |