Prepare the Statement of Cash Flows for This Year
Part 1: Use the following summary of the Balance Sheet and prepare
a Statement of Cash Flows using the Template shown in Exhibit
10.7 on page 432. A template means a "format" every line will
not be used but keep true to the layout.
	Last Yr	This Yr	This Year versus Last Year	Good or Bad for Cash?	Operating, Investing or Financing section
Assets
Cash	8,800	2,000	(6,800)	Not applicable as "Cash" is what you are reconciling	Not applicable as "Cash" is what you are reconciling
Accounts Receivable	19,300	34,100
Land	20,000	20,000
Building	45,600	95,600
Accumulated Depreciation, building	(25,000)	(35,000)
Total Assets	68,700	116,700
Liabilities & Stockholders' Equity
Accounts Payable	6,700	20,700
Long-term mortgage on building	-	30,000
Common stock	2,000	2,000
Retained earnings	60,000	64,000
	68,700	116,700
Use the following additional information to prepare the Cash Flow Statement.
From Income Statement	Last Yr	This Yr
Sales revenue	100,000	110,000
Operating costs	90,000	89,200
Net Income	10,000	20,800
From Statement of Retained Earnings.
Retained Earnings, end of Last Year		60,000	<--- Beginning
Net Income for This year		20,800	Current year net income
Subtotal		80,800
Cash Dividends		(16,800)	Paid Out
Retained Earnings, end of This Year		64,000	<--- Ending
Part 2:
Question to explain in your own words, please type neatly in Word:
The ower is going crazy accusing everyone of stealing from him as he made
$20,800 but only has $2,000 to show for it in the bank. Youre the accountant
calmly explain to the owner where the money went. Use common sense
English as this owner is not sophisticated when it comes to accounting.

Good or Bad for Cash?

Operating, Investing or Financing section

Not applicable as "Cash" is what you are reconciling

Not applicable as "Cash" is what you are reconciling