Guided Walkthroughs
The $10 Depreciation Walk, Extended — Step 4 of 10: Balance sheet — close the loop and prove it balances.
Model answer
Assets: cash +$2.50 (from the CFS); net PP&E −$10 (accumulated depreciation grew $10). Total assets: +2.50 − 10 = −$7.50. Liabilities: unchanged. Equity: retained earnings −$7.50 (net income flows…
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