STATEMENT OF INCOME AND EXPENDITURE ACCRUAL ACOUNTING Sales Cash - Starting Balance 1/1 STATEMENT OF FINANCIAL POSITION 500 Cash - Final Balance 31/12 Statement of Cash Flows Direct Method 729 Changes OPERATIONS (Current assets and debt) Net Income Statement of Cash Flows Indirect method $14 0 Cash received from 600 Decrease in accounts receivable 70 customers ? Decrease in accounts receivable ? less expenses: Cost of goods sold 110 Increase in Inventory 70 Cash paid to suppliers ? Increase in Inventory ? Increase in Accounts Payable 50 Increase in Accounts Payable ? Expense of uncollectible Increase in Provision for 10 accounts Uncollectibles 8 Increase in Provision for Uncollectibles ? Salary Expenditure 227 Decrease in Wages Payable 20 Cash paid by salary ? Decrease in Wages Payable ? Insurance Expense 12 Increase in Prepaid Insurance 6 Cash Paid for Insurance ? Increase in Prepaid Insurance ? Depreciation Expense 15 Accumulated Depreciation Increase 5 Depreciation Expense ? Interest Expense Tax Expenditure 9 Increase in interest to pay 2 Cash paid by Interest ? Increase in Interest to Pay ? 75 Decrease in Taxes Payable 10 Cash paid for taxes ? Decrease in Taxes Payable ? Loss from sale of 7 equipment Net Increase in Equipment 100 Loss from sale of equipment ? Go to Settings to activate Windows.