• 
  

  Account Title	Beginning Balance	Ending Balance	Debits	Credits
  Cash	$50,000	$45,000	$30,000	$35,000
  Accounts Receivable	$60,000	$55,000	$40,000	$45,000
  Inventory	$70,000	$65,000	$35,000	$40,000
  Prepaid Expenses	$20,000	$25,000	$15,000	$20,000
  Equipment	$200,000	$210,000	$40,000	$50,000
  Accounts Payable	$45,000	$50,000	$35,000	$40,000
  Notes Payable	$30,000	$25,000	$20,000	$15,000
  Common Stock	$100,000	$110,000	$10,000	$20,000
  Retained Earnings	$150,000	$170,000	$40,000	$60,000
  Sales Revenue	-	-	$300,000	-
  Cost of Goods Sold	-	-	$200,000	-
  Rent Expense	-	-	$15,000	-
  Utilities Expense	-	-	$8,000	-
  Salary Expense	-	-	$25,000	-
  --------------------------	-----------------------	--------------------	-------------	-------------
  Total	-	-	$833,000	$965,000

  Requirements:

  • Prepare a statement of cash flows using the indirect method.
  • Analyze the cash flow activities of the company.
  • Discuss any significant changes in cash balances during the period.
  • Provide recommendations for cash flow management based on the analysis.