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4.3 a. What are assets? b. What are the three major categories of assets?

4.3 a. What are assets? b. What are the three major categories of assets?

4.3 a. What are assets?

b. What are the three major categories of assets?

4.6 a. What is the difference between liabilities and equity?

b. What makes a liability a current liability?

c. Give some examples of current liabilities.

d. What is the difference between long-term debt and notes payable?

4.9 a. What is the statement of cash flows, and how does it differ from the income statement?

b. What are the three major sections of the statement of cash flows?

c. What is the bottom line of the statement of cash flows, and how important is it?


San Mateo Healthcare had an equity balance of $1.38 million at the beginning of the year. At the end of the year, its equity balance was $1.98 million. a. Assume that San Mateo is a not-for-profit organization.

What was its net income for the period?

b. Now, assume that San Mateo is an investor-owned business. • Assuming zero dividends, what was San Mateo’s net income?

• Assuming $200,000 in dividends, what was its net income?

• Assuming $200,000 in dividends and $300,000 in additional stock sales, what was San Mateo’s net income?

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