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    jlford19 Posts: 6, Reputation: 1
    New Member
     
    #1

    Feb 25, 2007, 10:36 PM
    Cash flow Statement
    Hi, I am needing someone to look over my statements especially the cash flow one, if anyone could help me with what I did wrong that would be great, Thanks



    Rosa Partridge started the Creative Frame Shop in a small shopping center, In the first weeks of operations, the company completed the following transactions.
    A. Deposotied 21,000 in an account in name of the company
    B. Paid the current months rent, 1500
    C purchased store equipment on credit, 10800
    D Purchased framing supplies for cash 5,100
    E Received framing revenue, 2400
    F billed customers for services, 2100
    G Paid utilities expense, 750
    H Received payment from customer in transaction F 600
    I make payment on store equipment purchaseed in transaction c 5400
    J withdrew cash for personal expense 1200

    Income Statement
    Revenue 4,500
    Expenses
    Rent 1500
    Utilities 750
    Total Expenses 2250
    Net Income 2250

    Owners Equity
    Partridge capital 21000
    Add Investments ?
    Net Income 23,250
    Withdrawals 1200
    Capital 22050

    Cash Flow
    Net Income 2250
    Increase A/R (1500)
    Increase Supplies (5100)
    Accounts Payable 5400
    Net cash flow form
    Operating activities 1050

    Investing Activities
    Purchase of equipment (10800)
    Net cash flow from
    Investing activities (10800)

    Financing Activities
    Investments 21000
    Withdrawals (1200)
    Net cash flow from
    Financing Activities 19800
    Decrease in cash 10050
    Cash at end of month 10,050
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
     
    #2

    Feb 28, 2007, 03:12 AM
    A. Deposited 21,000 in an account in name of the company
    Running Totals:
    Cash 21,000
    Equity 21,000

    B. Paid the current months rent, 1500
    Running Totals:
    Cash 19,500
    Rent Expense 1,500
    Equity 21,000

    C purchased store equipment on credit, 10800
    Running Totals:
    Cash 19,500
    Equipment 10,800
    AP 10,800
    Rent Expense 1,500
    Equity 21,000

    D Purchased framing supplies for cash 5,100
    Running Totals:
    Cash 14,400
    Supplies 5,100
    Equipment 10,800
    AP 10,800
    Rent Expense 1,500
    Equity 21,000

    E Received framing revenue, 2400
    Running Totals:
    Cash 16,800
    Supplies 5,100
    Equipment 10,800
    AP 10,800
    Framing Revenue 2,400
    Rent Expense 1,500
    Equity 21,000

    F billed customers for services, 2100
    Running Totals:
    Cash 16,800
    AR 2,100
    Supplies 5,100
    Equipment 10,800
    AP 10,800
    Framing Revenue 4,500
    Rent Expense 1,500
    Equity 21,000

    G Paid utilities expense, 750
    Running Totals:
    Cash 16,050
    AR 2,100
    Supplies 5,100
    Equipment 10,800
    AP 10,800
    Framing Revenue 4,500
    Rent Expense 1,500
    Utilities Expense 750
    Equity 21,000

    H Received payment from customer in transaction F 600
    Running Totals:
    Cash 16,650
    AR 1,500
    Supplies 5,100
    Equipment 10,800
    AP 10,800
    Framing Revenue 4,500
    Rent Expense 1,500
    Utilities Expense 750
    Equity 21,000

    I make payment on store equipment purchased in transaction c 5400
    Running Totals:
    Cash 11,250
    AR 1,500
    Supplies 5,100
    Equipment 10,800
    AP 5,400
    Framing Revenue 4,500
    Rent Expense 1,500
    Utilities Expense 750
    Equity 21,000

    J withdrew cash for personal expense 1200
    Running Totals:
    Cash 10,050
    AR 1,500
    Supplies 5,100
    Equipment 10,800
    AP 5,400
    Framing Revenue 4,500
    Rent Expense 1,500
    Utilities Expense 750
    Drawings 1,200
    Capital 21,000



    Statements:

    Income Statement
    Framing Revenue 4,500
    Rent Expense 1,500
    Utilities Expense 750
    NET INCOME = 2,250

    Balance Sheet:
    Assets:
    Cash 10,050
    AR 1,500
    Supplies 5,100
    Equipment 10,800
    TOTAL ASSETS = 27,450

    Liabilities
    AP 5,400

    Owner's Equity
    Drawings (1,200)
    Capital 21,000 + 2,250 = 23,250

    Total Liabilities + OE = 27,450

    Cash Flow Statement

    Operating Activities:
    Net Income 2,250
    Increase in AR (1,500)
    Increase in AP 5,400
    Increase in Supplies (5,100)
    Cash from operating activities = 1,050

    Investing Activities:
    Equipment (10,800)
    Cash from Investing Activities = (10,800)

    Financing Activities:
    Increase in Capital 21,000
    Less Drawings (1,200)
    Cash from Financing Activities = 19,800

    Net Cash change/provided during the year = 10,050

    Now to check that number:
    Cash, beginning of year = 0
    Cash, end of year = 10,050
    Change in cash during year = 10,050

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