SMITH STEELE CONSULTING

Statement of Owners Equity

For the Month Ended August 31, 2011

Sheila Shaw, capital, August 1, 2007.......................................... $ 0

Additional investments during the month.................................. 36,000

Total............................................................................................... $ 36,000

Net income for the month............................................................ $ 17,395

Less withdrawals.......................................................................... 5,000

Increase in owners equity........................................................... 12,395

Sheila Shaw, capital, August 31, 2007........................................ $ 48,395

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SMITH STEELE CONSULTING

Statement of Cash Flows

For the Month Ended August 31, 2011

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income for the month:................................................... $17,395

Adjustment for depreciation....................................... 675

Cash provided by operating activities................................ 18,070

(Increase) in working capital items

Accounts receivable.......................................................... (3,800)

Supplies.............................................................................. (875)

Prepaid expenses............................................................... 3,720

Accounts payable.............................................................. 1,250

Salaries payable................................................................ 150

Unearned fees.................................................................... 1,150

Cash flows from operating activities........................................... $18,990

CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisition of office equipment........................................... (21,250)

Cash flows from investing activities............................................ $(21,250)

CASH FLOWS FROM FINANCING ACTIVITIES:

Advances from shareholder (net of withdrawals)............. 31,000

Cash flows from financing activities........................................... $31,000

Net increase in cash...................................................................... $28,740

CASH-BEGINNING OF PERIOD............................................. 0

CASH-END OF PERIOD............................................................ $21,300

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What are the errors? There's one in the Owner's equity and 2 in the cash flow report.