Table 1-1
Following Is a Random List Showing the Account

question 89

Multiple Choice

Table 1-1
Following is a random list showing the account balances of various assets, liabilities, revenues, and expenses for Spiffy's Garage at December 31, 2019, the end of its first year of operations. $\begin{array} { | l | r | } \hline \text { Accounts receivable } & \$ 15,000 \\\hline \text { Accounts payable } & 3,500 \\\hline \text { Salary expense } & 4,500 \\\hline \text { Repairs expense } & 800 \\\hline \text { Truck } & 8,500 \\\hline \text { Equipment } & 6,300 \\\hline \text { Notes payable } & 8,200 \\\hline \text { Cash } & 6,800 \\\hline \text { Supplies expense } & 1,600 \\\hline \text { Service revenue } & 12,800 \\\hline \text { Gasoline expense } & 800 \\\hline \text { Salary payable } & 2,200 \\\hline\end{array}$ The owner, Spiffy Sloan, invested $22,600 at the beginning of the year and withdrew $5,000 during the year for personal use.
-Refer to Table 1-1. Not including the investment, the net change in owner's equity for the year ended December 31, 2019, was:

• A)an increase of $5,100.
• B)a decrease of $7,800.
• C)an increase of $22,700.
• D)an increase of $100.

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Definitions:

Statement of Comprehensive Income

A financial statement that includes all changes in equity during a period except for those resulting from investments by and distributions to shareholders.

Sales Forecast

An estimation of the sales a company expects to achieve in a future period.

Financial Plans

Strategies developed to achieve financial goals, including savings, investments, and managing expenses and income.

Percentage Sales Approach

A financial planning approach that forecasts future financial statements based on the expected percentage change in sales.