Table 4.2 Magna Fax,Inc.
Balance Sheet
For the Years Ended December 31,2018 and 2019
-The credit manager at First National Bank has just received the income statement and balance sheet for Magna Fax,Inc.for the year ended December 31,2019.(See Table 4.2.)The bank requires the firm to report its earnings performance and financial position quarterly as a condition of a loan agreement.The bank's credit manager must prepare two key financial statements based on the information sent by Magna Fax,Inc.This will be passed on to the commercial loan officer assigned to this account,so that he may review the financial condition of the firm.
(a)Prepare a statement of retained earnings for the year ended December 31,2019.
(b)Prepare a summary of cash inflows and cash outflows for the year ended December 31,2019.
(c)Prepare a statement of cash flows for the year ended December 31,2019,organized by cash flow from operating activities,cash flow from investment activities,and cash flow from financing activities.

Question

Table 4.2  Magna Fax,Inc.
Balance Sheet
For the Years Ended December 31,2018 and 2019 
-The credit manager at First National Bank has just received the income statement and balance sheet for Magna Fax,Inc.for the year ended December 31,2019.(See Table 4.2.)The bank requires the firm to report its earnings performance and financial position quarterly as a condition of a loan agreement.The bank's credit manager must prepare two key financial statements based on the information sent by Magna Fax,Inc.This will be passed on to the commercial loan officer assigned to this account,so that he may review the financial condition of the firm.
(a)Prepare a statement of retained earnings for the year ended December 31,2019.
(b)Prepare a summary of cash inflows and cash outflows for the year ended December 31,2019.
(c)Prepare a statement of cash flows for the year ended December 31,2019,organized by cash flow from operating activities,cash flow from investment activities,and cash flow from financing activities.

Quizplus · Accepted Answer

The Answer of Table 4.2  Magna Fax,Inc.
Balance Sheet
For the Years Ended December 31,2018 and 2019 
-The credit manager at First National Bank has just received the income statement and balance sheet for Magna Fax,Inc.for the year ended December 31,2019.(See Table 4.2.)The bank requires the firm to report its earnings performance and financial position quarterly as a condition of a loan agreement.The bank's credit manager must prepare two key financial statements based on the information sent by Magna Fax,Inc.This will be passed on to the commercial loan officer assigned to this account,so that he may review the financial condition of the firm.
(a)Prepare a statement of retained earnings for the year ended December 31,2019.
(b)Prepare a summary of cash inflows and cash outflows for the year ended December 31,2019.
(c)Prepare a statement of cash flows for the year ended December 31,2019,organized by cash flow from operating activities,cash flow from investment activities,and cash flow from financing activities.