LG 4 P4-12 Cash flow concepts The following represent financial transactions that Johnsfield & Co. will be undertaking in the next planning period. For each transaction, check the statement or statements that will be affected immediately. Statement Cash budget Pro forma income statement Pro forma balance sheet Transaction Cash sale Credit sale Accounts receivable are collected Asset with 5-year life is purchased Depreciation is taken Amortization of goodwill is taken Sale of common stock Retirement of outstanding bonds Fire insurance premium is paid for the next 3 years