Shown below are the financial statements for the Alpha Corporation

1 Refer to Alpha Corporation. What is the working capital for 20X2 and 20X1, respectively?

Refer to Case 7-1.

A business purchased a machine that had a total cost of $220,000 and a residual value of $20,000. The asset is expected to service the business for a period of 10 years or produce a total of 1,000,000 units. The machine was purchased January 1st of the current year and has been in service one complete year. 

Now assume the business uses the units-of-production method. If the asset produces 250,000 units in year one and 200,000 units in year two, what is book value at the end of year two?

The primary purpose of financial accounting is to ………………………

The purpose of the income statement is to: