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FINANCIAL STATEMENT ANALYSIS
ANSWER KEY
3.
A customer of Fruit Packing, Inc. is no longer able to pay its bills. The amount
to be written off as a loss is $1.9 million. What will the new
A
CCOUNTS
R
ECEIVABLE
amount be?
b) 21.8
23.7 - 1.9 = 21.8
4.
This event will also affect an account on the other side of the Balance Sheet. What is
this account?
e) Retained Earnings
The value of the stockholder's equity is affected by a change in the value of an asset.
This value is found in the R
ETAINED
E
ARNINGS
account.
5.
What will the new amount of this account be?
e) 42.2
44.1 - 1.9 = 42.2