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CHAPTER 9 Financial Statements for

CHAPTER 9 Financial Statements for a Sole ProprietorshipWhat You ll LearnExplain the purpose of the income an income the purpose of the statement of changes in owner s a statement of changes in owner s the purpose of the balance a balance the purpose of the statement of cash ratio analysis and compute the accounting terms introduced in this It s ImportantFinancial Statements provide essential information for making sound o Hot Sauce CompanyNot all businesses take off like wildfire. Some begin modestly, like Tapat o Hot Sauce Company. Jose-Luis Saavedra Sr. started it in 1971 in a tiny warehouse. He drovehis own van for deliveries to stores and Tapat o grew, Saavedra enlisted family to help meet the increased product demand.

reports the net income or net loss for an accounting period. Read to Learn… the four financial statements prepared for a business. (p. 220) how to prepare an income statement. (p. 221) Key Terms financial statements income statement BEFORE YOU READ 220 Chapter 9 Financial Statements for a Sole Proprietorship

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