Gross Profit Expenses: Total Expense M4 Engineering Statement Date Statement of Stockholders' Equity Common Retained Stock Earnings Total Balances, May 1, 2019 2$ 20,000 S 10,000 $ 30,000 Issued Common Stock Note: No stock was issued Balances, April 30, 2020 Statement Date M4 Engineering Balance Sheet ASSETS LIABILITIES Current Assets: Current Liabilities: Total Liabilities Total Current Assets STOCKHOLDER'S EQUITY Property, Plant, & Equipment Total Stockholder's Equity Total Property, Plant, & Equipment Total Assets Total Liabilities & Stockholder's Equity
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
![### M4 Engineering Financial Statements
#### M4 Engineering Income Statement
- **Statement Date**: [No specific date provided]
- **Gross Profit**: [Amount not provided]
- **Expenses**:
- Total Expense: [Amount not provided]
#### M4 Engineering Statement of Stockholders’ Equity
- **Balances, May 1, 2019**:
- **Common Stock**: $20,000
- **Retained Earnings**: $10,000
- **Total**: $30,000
- **Issued Common Stock**:
- Common Stock: 0
- Retained Earnings: 0
- Total: 0
- **Balances, April 30, 2020**:
- Note: No stock was issued
#### M4 Engineering Balance Sheet
- **Statement Date**: [No specific date provided]
##### Assets
- **Current Assets**: [Details not provided]
- Total Current Assets: [Amount not provided]
- **Property, Plant, & Equipment**: [Details not provided]
- Total Property, Plant, & Equipment: [Amount not provided]
- **Total Assets**: [Amount not provided]
##### Liabilities
- **Current Liabilities**: [Details not provided]
- Total Liabilities: [Amount not provided]
##### Stockholders’ Equity
- Total Stockholders’ Equity: [Amount not provided]
- **Total Liabilities & Stockholder's Equity**: [Amount not provided]
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The document provides a structure for M4 Engineering’s financial statements, including the income statement, statement of stockholders' equity, and balance sheet. Note that several specific amounts and details are not present within this document, indicating they are to be filled out based on the company’s financial data.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F659f2c0d-ff85-4c8a-a61d-16adf551757e%2Fbddfc8c3-369b-44c1-9dec-a2ca5b2a0703%2Fh9ztbwd_processed.jpeg&w=3840&q=75)
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