YOUTUBE VIDEO - CASH FLOWS

Balance Sheet
Assets 2005 2004 Change Income Statement
Cash 75,425 107,275 (31,850) 2005
Accounts Receivable 91,000 69,475 21,525 Sales 694,750
Inventory 383,250 353,500 29,750 Cost of Goods Sold 350,000
Prepaid Rent 7,525 8,750 (1,225) Gross Profit 344,750
Equipment 223,300 154,000 69,300 Operating Expenses:
Accumulated Amortization (48,475) (61,600) 13,125 Amortization Expense 26,250
Total Assets 732,025 631,400 Other Expense 191,100
Total Operating Expenses 217,350
Liabilities Loss on Sale of Equipment 7,175
Accounts Payable 123,375 163,275 (39,900) Operating Income 120,225
Short Term Notes Payable 14,000 8,750 5,250 Income Taxes 16,975
Long-Term Notes Payable 131,250 75,250 56,000 Net Income 103,250
Total Liabilities 268,625 247,275

Shareholders' Equity
Common Shares 281,750 218,750 63,000
Retained Earnings 181,650 165,375 16,275
Total Shareholders' Equity 463,400 384,125

Total Libiabilities & Shareholders' Equity 732,025 631,400

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 YAHN INC
Comparative Balance Sheet Income Statement
December 31 Year Ended December 31, 2011

2011 2010 Sales 1,516,200

Cash 191,100 100,170 Cost of Goods Sold 819,000
Accounts Receivable 103,740 127,050 Gross Profit 697,200
Inventory 636,300 686,280 Operating Expenses:
Prepaid Expenses 23,940 26,880 Amortization Expense 51,240
Equipment 389,550 302,400 Other Expenses 549,990
Accumulated Depreciation 152,250 130,200 Total Operating Expenses 601,230
Accounts Payable 164,430 172,830 Loss on sale of equipment 2,940
Short-Term Note Payable 24,150 15,750 Income from Operations 93,030
Long-Term Note Payable 157,500 115,500 Income Taxes 13,230
Common Shares 676,200 630,000 Net Income 79,800
Retained Earnings 170,100 178,500

OTHER ADDITIONAL INFORMATION:

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

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