1. Brief Exercise BE1-7. Indicate which statement you would examine to find each of the following items: income statement, balance sheet, retained earnings statement, or statement of cash flows.
2. Brief Exercise BE1-8. Use the basic accounting equation to answer these questions.
(a) The liabilities of Cummings Company are $90,000 and the stockholders’ equity is $230,000. What is the amount of Cummings Company’s total assets?
(b) The total assets of Haldeman Company are $170,000 and its stockholders’ equity is $90,000. What is the amount of its total liabilities?
(c) The total assets of Dain Co. are $800,000 and its liabilities are equal to one-fourth of its total assets. What is the amount of Dain Co.’s stockholders’ equity?
3. Brief Exercise BE1-9. At the beginning of the year, Fuqua Company had total assets of $800,000 and total liabilities of $500,000.
(a) If total assets increased $150,000 during the year and total liabilities decreased $80,000, what is the amount of stockholders’ equity at the end of the year?
(b) During the year, total liabilities increased $100,000 and stockholders’ equity decreased $70,000. What is the amount of total assets at the end of the year.
(c) If total assets decreased $90,000 and stockholders’ equity increased
