1. Charles Diggs began his new business, called Diggs Systems Company, on January 1. 20xx. The company writes computer programs with special applications for businesses that own small computers. During the first six months of operation, the business was so successful that Diggs had to hire new employees on several occasions. Yet, he continually had to put off creditors because he lacked the funds to pay them. He wants to apply for a bank loan, but after preparing a statement showing the totals of receipts of cash and payments of cash, he wonders whether a bank will make a loan to him on the basis of what seem to be poor results. Deciding that he needs some accounting help, Diggs asks you to review the statement and the company's operating results.

Diggs Systems Company

Statement of Cash Receipts and Payments