YOUTUBE VIDEO - CASH FLOWS

Balance Sheet
Assets
Cash
Accounts Receivable
Inventory
Prepaid Rent
Equipment
Accumulated Amortization
Total Assets

2005
75,425
91,000
383,250
7,525
223,300
(48,475)
732,025

2004
Change
107,275
(31,850)
69,475
21,525
353,500
29,750
8,750
(1,225)
154,000
69,300
(61,600)
13,125
631,400

Liabilities
Accounts Payable
Short Term Notes Payable
Long-Term Notes Payable
Total Liabilities

123,375
14,000
131,250
268,625

163,275
8,750
75,250
247,275

(39,900)
5,250
56,000

Shareholders' Equity
Common Shares
Retained Earnings
Total Shareholders' Equity

281,750
181,650
463,400

218,750
165,375
384,125

63,000
16,275

Total Libiabilities & Shareholders' Equity

732,025

631,400

Income Statement
Sales
Cost of Goods Sold
Gross Profit
Operating Expenses:
Amortization Expense
Other Expense
Total Operating Expenses
Loss on Sale of Equipment
Operating Income
Income Taxes
Net Income

2005
694,750
350,000
344,750
26,250
191,100
217,350
7,175
120,225
16,975
103,250

Additional Information:
Loss on Sale of equipment is $7,175
Equipment costing $65,625 with accumulated amortization of $39,375 is sold for $19,075
Equipment costing $134,925 is purchased by paying cash of $35,000 and signing a
long term note for the balance
Borrowed $5250 by signing a short ter note payable
Paid $43,925 to reduce long-term note payable
Issued 3,500 common shares for cash at $18 per share
Declared and paid cash dividends of $86,975
Stock price is $10 per share
Total number of shares outstanding at the end of the year is 100,000.
Sepand Jazzi

CASH FLOW STATEMENT

Identify how each transaction would affect the cash flow statement
use journal entries to assist you
Sold land costing $75,000 during the year for $90,000 cash
Reported a net loss of $5,000
Bought machinery for $24,000 in exchange for a note due in 18 months
Equipment amortization is $18,000
The accounts receivable account increased by $1,200
Sold 2,000 common shares for $6/share
The inventory account decreased by $800
Declared a $15,000 cash dividend; paid $12,000 during the year
The prepaid rent account decreased by $650
The unearned revenue account increased by $280
Issued $50,000 of bonds

Sepand Jazzi

YAHN INC
Comparative Balance Sheet
December 31

YAHN INC
Income Statement
Year Ended December 31, 2011

2011

2010

Cash
Accounts Receivable
Inventory
Prepaid Expenses
Equipment
Accumulated Depreciation
Accounts Payable
Short-Term Note Payable
Long-Term Note Payable

191,100
103,740
636,300
23,940
389,550
152,250
164,430
24,150
157,500

100,170
127,050
686,280
26,880
302,400
130,200
172,830
15,750
115,500

Common Shares
Retained Earnings

676,200
170,100

630,000
178,500

Sales
Cost of Goods Sold
Gross Profit
Operating Expenses:
Amortization Expense
Other Expenses
Total Operating Expenses
Loss on sale of equipment
Income from Operations
Income Taxes

1,516,200
819,000
697,200

Net Income

79,800

OTHER ADDITIONAL INFORMATION:

1.
2.
3.
4.
5.
6.
7.
8.

Equipment costing $71,400 is sold for 39,270

Equipment is purchased by paying cash of $53,550 and signing a long-term note for the balance
Borrowed $8,400 by signing a long term note
Reduced long-term note payable by making a payment
Issued 4,200 shares for cash at $11 per share
Declared and paid dividends
Average stock price for the year was $11/share
There were 80,000 shares outstanding at the end of 2011

51,240
549,990

###
2,940

93,030
13,230