How do you why the balance sheet equation must balance. When you purchase something on credit for $10,000 how does it affected the income statement, balance sheet, and statement of cash flow. When you have a $20,000 drop in revenue how does it affected the income statement, balance sheet, and statement of cash flow. How to produce a balance sheet and income statement for year end December 31, 2019.

MBA 5010 Week 7 Assignment Question 1 - In words, explain why the balance sheet equation must balance. Response here Question 2 - What is the meaning of (owner's) equity? Response here Question 3 - Downriver Excursions LLC buys a new boat on credit for $10,000. How does this affect the income statement, balance sheet, and statement of cash flows for that calendar year? What if anything will be affected and by how much? Income statement? Balance sheet? Statement of cash flows? Question 4 - Pulse, a dance club, saw a $40,000 drop in revenue during 2020 due to the Covid19 virus. How will this affect the 2020 incomes statement, balance sheet, and statement of cash flows? What if anything will be affected and by how much? Income statement? Balance sheet? Statement of cash flows? Question 5 - Based on the following financial information, on the next page construct the balance sheet and income statement below for Tonka Trucking LLC for the year ending December 31, 2019. Be sure to format them as accurately as possible. Accounts Receivable $40,000 Depreciation Expense $50,000 Accumulated Depreciation $200,000 Cost of Goods Sold $50,000 Income Tax Expense $50,000 Cash $50,000 Sales Revenue $400,000 Equipment (Net of Accumulation) $200,000 Selling, General, and Administrative Expenses $100,000 Common Stock (1,000 shares) $100,000 Accounts Payable $50,000 Retained Earnings $100,000 Interest Expense $50,000 Inventory $10,000 Long-term Debt $50,000 Respond here