Using all the following terms to establish balance sheet and income statement
Owner equity =60,000 Net profit =? Account receivable =95,000 retained earnings =10,000 gross profit =? Interes expense =2,500
To establish the balance sheet and income statement using the given terms, we need to understand how these terms relate to each other and to the standard accounting equations.
First, let's establish the balance sheet.
Balance Sheet:
Assets = Liabilities + Owner's Equity
Given information:
Owner's equity = $60,000
Accounts receivable = $95,000
Retained earnings = $10,000
Since we don't have any information about liabilities, we cannot directly calculate the total assets.
Next, let's establish the income statement.
Income Statement:
Net Profit = Gross Profit - Expenses
Given information:
Net profit = ?
Gross profit = ?
Interest expense = $2,500
Since we don't have any information about revenues, we cannot directly calculate the net profit or gross profit.
To completely establish both the balance sheet and income statement, we need additional information such as revenues, expenses, liabilities, and any other assets.
Without this additional information, it is not possible to accurately calculate the missing values.