Suppose that 75% of all investors invest in traditional annuities and 45% of them invest in the stock market. If 85% invest in the stock market and/or traditional annuities, what percentage invest in both?
Accounting 203 Week I 7 January Financial Statements 1. Income Statement R – E = NI Revenue – Expenses = Net Income 2. Statement of Retained Earnings BRE ± NI – DIV = ERE Beginning Retained Earnings ± Net Income – Dividends = End Retained Earnings 3. Balance Sheet A = L + SE Assets = Liabilities + Stockholder’s Equity A point in time, all others are for a period in time 4. Statement of Cash Flow Operating ± Financing ± Investing Debit = Credit Asset + ($ you have) -($ you owe) Liability - + Stockholder’s Equity - + Accounts Payable – informal agreements, promises Notes Payable – formal agreements, signed documents Journal Entries Insert debits first Indent credits An exchange of only promises is not a transaction so no journal entry is required List assets first, in order of liquidity (cash is always first) List liabilities in order of maturity “Current” assets/liabilities mean within 12 months Current ratio = current assets/current liabilities