• 
  

  Account Title	Beginning Balance	Ending Balance	Debits	Credits
  Cash	$80,000	$75,000	$45,000	$50,000
  Accounts Receivable	$90,000	$85,000	$50,000	$55,000
  Inventory	$100,000	$95,000	$55,000	$60,000
  Prepaid Expenses	$30,000	$35,000	$25,000	$30,000
  Equipment	$300,000	$310,000	$60,000	$70,000
  Accounts Payable	$55,000	$60,000	$45,000	$50,000
  Notes Payable	$40,000	$35,000	$30,000	$25,000
  Common Stock	$200,000	$220,000	$20,000	$40,000
  Retained Earnings	$250,000	$270,000	$60,000	$80,000
  Sales Revenue	-	-	$500,000	-
  Cost of Goods Sold	-	-	$300,000	-
  Rent Expense	-	-	$30,000	-
  Utilities Expense	-	-	$15,000	-
  Salary Expense	-	-	$50,000	-
  --------------------------	-----------------------	--------------------	-------------	-------------
  Total	-	-	$1,655,000	$1,845,000

  Requirements:

  • Prepare a statement of cash flows using the direct 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.