B. When the subject matter is objective and informative
Answer:
The financial statements are prepared in this order; income statement, balance sheet, and statement of stockholders' equity.(2,1,3)
Explanation:
The income statements contains the revenue and expenses, the net of which gives rise to a net income. The net income is what feeds into the retained earnings account to determine the closing balance of the retained earnings which is an element of the balance sheet.
After the income statement, the balance sheet is prepared. This shows the assets, liabilities and owners equity (of which retained earnings is a part).
The elements of the owners equity forms an integral part of the statement of stockholders' equity. Hence it is prepared after the balance sheet.
Answer:
$19,144.61
Explanation:
The first step would be to determine the present value of $1.25 million. After, the future value of that amount in 2 years has to be calculated
The formula for calculating future value:
P = FV / (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$1.25 million / (1.135)^35 = $14,861.23
Now we find the future value using this formula :
FV = P (1 + r)^n
$14,861.23 x (1.135)^2 = $19,144.61
