EZ CASH FLOW CASH F 100,000 0 15,000 ACCOUNTS PAYABLE 10,000 20,000 10,000 O 3,000 F JOHNSON CAPITAL 3,000 100,000 9,000 106,000 82,000 15,000 19,000 1,000 10,000 82,000 CASH ACCTSREC EQUIP ACC DEPR ACCTSPAY REVENUE JCAP 15,000 REV 15,000 EXP 30,000 DEPR EXP 10,000 106,000 30,000 ACCOUNTS RECEIVABLE 15,000 EXPENSES 10,000 10,000 20.000 CLOSING REVENUE EXPENSES 30,000 20,000 20,000 1,000 138,000 15,000 DEPR EXPENSE 1,000 146,000 J CAPITAL 9,000 EPRECIATION EXPENSE 1,000 EQUIPMENT 20,000 1.000 19.000 Note: enter the drawing as a debit to the capital account 1,000 ACCUM. DEPR EQ. 1,000 There are three types of cash flows 1 OPERATING: cash flows from revenues and expenses. 2 INVESTINIG: cash flows from purchasing or selling assets. 3 FINANCING: cash flows from owner's investment or withdrawals 1,000 TRANSACTIONS--Using your pencil, write each debit and credit into the T-accounts above. 1 Sally Johnson invested $100,000 in her business, Sally's Consulting 2 Sally purchased equipment for $20,000, paying cash. 3 Sally earned revenue of $30,000, one-half in cash, one-half on account. 4 Sally incurred $20,000 of expenses; she paid one-half in cash, the rest was on account 5 Depreciation is $1,000 on the Equipment 6 Move the net income to the Capital account. 7 Sally withdrew $3.000 from the business. CASH FLOW STATEMENT Cash Flows from Operations Net Income + Depreciation Expense -Increase in Accounts Receivable + Increase in Accounts Payable Net Cash from Operations 9,000 Enter the net income here, 1,000 Enter the depreciation expense. - 15,000 Enter A/R balance and make it negative. 10,000 Enter Accounts Payable balance. 5,000 Add Cash Flows from Investing Purchase of Equipment -20,000 Enter Equipment balance; make it negative. SUMA101_ORSUM4101_CR.SUMA101_DRI-SUMIA101_CRL" FISUMA101_CROSUMI4101_DR,SUMA101_CRI SUMALO1_DRL" Cash Flows from Financing Investment by Owner Withdrawal by Owner Net Cash from Financing 100,000 Enter Johnson's investment -3,000 Enter Johnson's drawing as a negative number 97,000 Add Total Cash flows Beginning Cash Balance Ending Cash Balance 82,000/=F36+F39+F44 0 82,000 =F46+F47 This final figure must match