LO5-01: Prepare an income statement, a statement of retained earnings, and a balance sheet.
LO5-02: Explain how the income statement and the statement of retained earnings relate to the balance sheet.
LO5-03: Explain the concept of adequate disclosure.
LO5-04: Explain the purposes of closing entries; prepare these entries.
LO5-05: Prepare an after-closing trial balance.
LO5-06: Use financial statement information to eva luate profitability and liquidity.
LO5-07: Explain how interim financial statements are prepared in a business that closes its accounts only at year-end.
LO5-08: Prepare a worksheet and explain its uses.