Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

تمرين 40

Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet
The following information was reported in the December 31, 2010, financial statements of Southwest Airlines, Inc. (listed alphabetically, amounts in millions).

1. Prepare an income statement for the year ended December 31, 2010.
2. Prepare a statement of retained earnings for the year ended December 31, 2010.
TIP : Assume the balance in retained earnings was $4,971 (million) at January 1, 2010.
3. Prepare a balance sheet at December 31, 2010.
4. Using the balance sheet, indicate whether the total assets of Southwest Airlines at the end of the year were financed primarily by liabilities or stockholders' equity.