EZ CASH FLOW CASH ACCOUNTS PAYABLE JOHNSON CAPITAL CASH 82.000 F 100.000 20.000 I 4.000 3.000 100.000 ACCTSREC 15.000 15.000 10.000 O 10.000 106.000 9.000 EQUIP 3.000 F 6.000 ACC DEPR 82.000 ACCTSPAY 6.000 EXPENSES REVENUE J CAP ACCOUNTS RECEIVABLE 20.000 20.000 3.000 30.000 REV 27.000 CLOSING: 15.000 REVENUE 30.000 EXP EXPENSES 20.000 27.000 DEPR EXP 15.000 DEPR EXPENSE 1.000 82.000 48.000 J CAPITAL 9.000 DEPRECIATION EXPENSE EQUIPMENT 1.000 1.000 20.000 20.000 Note: enter the drawing as a debit to the capital account. There are three types of cash flows: 1 OPERATING: cash flows from revenues and expenses. 2 INVESTINIG: cash flows from purchasing or selling assets. ACCUM. DEPR EQ. 1.000 1.000 3 FINANCING: cash flows from owner's investment or withdrawals. CASH FLOW STATEMENT TRANSACTIONS-Using your pencil, write each debit and credit into the T-accounts above. 1 Sally Johnson invested $100,000 in her business, Sally's Consulting. 2 Sally purchased equipment for $20,000, paying cash. Cash Flows from Operations Net Income Enter the net income here. + Depreciation Expense Enter the depreciation expense. 3 Sally eamed revenue of $30,000, one-half in cash, one-half on account. -Increase in Accounts Receivable Enter A/R balance and make it negative. 4 Sally incurred $20,000 of expenses; she paid one-half in cash, the rest + Increase in Accounts Payable Enter Accounts Payable balance. was on account. Net Cash from Operations 0 |Add 5 Depreciation is $1,000 on the Equipment. 6 Move the net income to the Capital account. Cash Flows from Investing 7 Sally withdrew $3,000 from the business. Purchase of Equipment Enter Equipment balance; make it negative. Cash Flows from Financing =IF(SUM(A101_DR)>SUM(A101_CR),SUMA101 DR)-SUM(A101_CR),") Investment by Owner |Enter Johnson's investment Withdrawal by Owner Net Cash from Financing Enter Johnson's drawing as a negative number 0 Add =IF(SUM(A101_CR)>SUM[A101_DRI,SUMIA 101_CR)-SUM(A101_DR),") Total Cash flows 0=F36+F39+F44 Beginning Cash Balance Ending Cash Balance 0 =F46+F47 This final figure must match the ending balance in the cash