Consider the effects of the independent transactions, a and b, on a companys balance sheet, income statement, statement of cash flows, and statement of stockholders equity.

a.	The company collected cash from clients previously billed for goods sold.
b.	The company paid cash for inventory purchased in Transaction a.

Complete the table below to explain the effects and financial statement linkages. Use + to indicate the account increases and to indicate the account decreases.

	a.	b.
Balance sheet
Cash
Noncash assets
Total liabilities
Contributed capital
Retained earnings
Other equity
Statement of cash flows
Operating cash flow
Investing cash flow
Financing cash flow
Income statement
Revenues
Expenses
Net earnings
Statement of Stockholders' equity
Contributed capital
Retained earnings