Year 1 Year 2 NOTES Income Statement 6 3,000 1,000 4,000 600 0 3 4 Service Revenue 5 Sales Revenue Total Revenue 7. Cost of Goods Sold 8 Operating Expenses 9 Depreciation Expense 10 Interest Expense 11 Total Expense 12 Net Income 400 300 300 180 240 1,540 2,460 480 (480) Net Income came to the Semt Of RE 13 14 0 3,000 3,000 Stmt of Stockholders Equity 15 Beginning Common Stock 16 Plus: Common Stock Issued 3,000 17 Ending Common Stock 18 Beginning Retained Earnings 19 Net Income 2,460 20 - Dividends 150 21 Ending Retained Earnings 2,310 22 Total Stockholders Equity 5,310 0 3,000 2,310. Ending RE from one year becomes (480) Beginning RE the next year. 1,830 End RE carries to RE on Balance Sheet 4,830 23 24 Balance Sheet 5.910 1,900 1.800 (300) 9,310 4.730 1.900 1.800 (600) 7,830 Total Assets Total Liabilities & SE 25 Assets 26 Cash 27 Inventory 28 Equipment 29 Accumulated Depreciation 30 Total Assets 31 Habilities 32 Notes Payable 33 Total Liabilities 34 Stockholders Equity Common Stock 36 Retained Earnings 37 Total Stockholders Equity 38 Total abilities & SE 4,000 4,000 3,000 3,000 35 3,000 2,310 5,310 9,310 3.000 1,830 4,830 7,830 Total Assets - Total Liabilities & SE 39 40 Statement of Cash Flows 41 Net Cashflow from Operating 860 42 Net Cashflow from Investing (1,800) 43 Net Cashflow from Financing 6,850 44 Net Change in Cash 5,910 45 Beginning Cash Balance 0 46 Ending Cash Balance 5,910 47 (180) Inflow and (Outflow) Inflow and Outllow (1,000) inflow and (Outflow) (1.180) Sum of Operating Investing & Financing 5,910 4,730 Should =Cash on Balance Sheet 48 Year 1 Year 2 NOTES Income Statement 6 3,000 1,000 4,000 600 0 3 4 Service Revenue 5 Sales Revenue Total Revenue 7. Cost of Goods Sold 8 Operating Expenses 9 Depreciation Expense 10 Interest Expense 11 Total Expense 12 Net Income 400 300 300 180 240 1,540 2,460 480 (480) Net Income came to the Semt Of RE 13 14 0 3,000 3,000 Stmt of Stockholders Equity 15 Beginning Common Stock 16 Plus: Common Stock Issued 3,000 17 Ending Common Stock 18 Beginning Retained Earnings 19 Net Income 2,460 20 - Dividends 150 21 Ending Retained Earnings 2,310 22 Total Stockholders Equity 5,310 0 3,000 2,310. Ending RE from one year becomes (480) Beginning RE the next year. 1,830 End RE carries to RE on Balance Sheet 4,830 23 24 Balance Sheet 5.910 1,900 1.800 (300) 9,310 4.730 1.900 1.800 (600) 7,830 Total Assets Total Liabilities & SE 25 Assets 26 Cash 27 Inventory 28 Equipment 29 Accumulated Depreciation 30 Total Assets 31 Habilities 32 Notes Payable 33 Total Liabilities 34 Stockholders Equity Common Stock 36 Retained Earnings 37 Total Stockholders Equity 38 Total abilities & SE 4,000 4,000 3,000 3,000 35 3,000 2,310 5,310 9,310 3.000 1,830 4,830 7,830 Total Assets - Total Liabilities & SE 39 40 Statement of Cash Flows 41 Net Cashflow from Operating 860 42 Net Cashflow from Investing (1,800) 43 Net Cashflow from Financing 6,850 44 Net Change in Cash 5,910 45 Beginning Cash Balance 0 46 Ending Cash Balance 5,910 47 (180) Inflow and (Outflow) Inflow and Outllow (1,000) inflow and (Outflow) (1.180) Sum of Operating Investing & Financing 5,910 4,730 Should =Cash on Balance Sheet 48
