TRIAL BALANCES INSTRUCTIONS: Prepare a statement of cash flow for the current month.

This means the change from prior to current.

PRIOR MONTH CURRENT MONTH

DEBIT CREDIT DEBIT CREDIT HOMEWORK PROBLEM

CASH $5,00013,200$ STATEMENT OF CASH FLOWS $($INDIRECT METHOD$)$

ACCOUNTS RECEIVABLE $1,000500$ FOR THE CURRENT MONTH PERIOD $($not the prior period$)$

PREPAID INSURANCE $3,0003,500$

EQUIPMENT $8,00010,000$ OPERATING

LAND $3,0003,000$ Net income

ACCUM. DEPRECIATION $4,0006,000$ Plus$/$minus $-$ adjustments to reconcile net income to operating activities

ACCOUNTS PAYABLE $1,000400$

"COMMON

STOCK" $10,00014,000$

"RETAINED

EARNINGS" $5,0005,000$

DIVIDENDS $500$ TOTAL OPERATING ACTIVITIES $-$

REVENUE $8,000$

INSURANCE EXPENSE $200$ INVESTING ACTIVITIES

GAS EXPENSE $500$

DEPRECIATION EXPENSE $2,000$

TOTAL INVESTING ACTIVITIES

$20,00020,00033,40033,400$

FINANCING ACTIVITIES

TIP $1$: Assets move in the opposite direction; liabilities and equity in the same direction.

TIP $2$: You are focused on the change for the period.

TOTAL FINANCING ACTIVITIES

TOTAL CHANGE IN CASH

BEGINNING BALANCE

ENDING BALANCE