The following information was reported in the December 31, 2012, financial statements of Southwest Airlines, Inc. (listed

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The following information was reported in the December 31, 2012, financial statements of Southwest Airlines, Inc. (listed alphabetically, amounts in millions).
The following information was reported in the December 31, 2012,

1. Prepare an income statement for the year ended December 31, 2012.
2. Prepare a statement of retained earnings for the year ended December 31, 2012.
3. Prepare a balance sheet  at December 31, 2012.
4. Using the balance sheet,  indicate whether the total assets of Southwest Airlines at the end of the year were financed primarily by liabilities or stockholders equity.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Fundamentals of Financial Accounting

ISBN: 978-0078025914

5th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

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