2-1 Purchase Inventory for $16,000 cash 2-2 Service & Sales Revenue Service Revenue $23,100 Sales Rev $26,400; COGS $13,200 2-3 Expenses Total Operating Exp. $25,000 Depreciation Exp. = equip. cost x 1/5 Interest Expense = Note Pay yr. end balance x 8% 34,000 38,000 2,680 0 18 Year 2 19 52,280 8,000 18,000 (3,600) 20 2-1 21 22 22 2-2 23 2 2 24 2-3 25 2-3 26 2-3 27 2-4 28 Closing 29 Total 52,280 8,000 18,000 (3,600) 30 31 Big Picture Project Horizontal Transaction Analysis 32 Balance Sheet 34,000 38,000 2,680 0 0 Income Statement 52,280 8,000 18,000 13,600) (45,000) 0 34,000 38,000 2,600 142,320) 0 52.280 8,000 18,000 (3,600) 34,000 38,000 2.680 0 0 10 17 Total 18 Year 19 20 21 21 2-2 22 2-2 23 22 24 23 25 2-3 26 2-3 27 24 28 Closing 29 Toral 52,280 8,000 18,000 30 31 Big Picture Project Horizontal Transaction Analysis (3,600) 34,000 38,000 2,680 0 0