cash Flow LIABILITIES * cumert + Longttenn Financial statement relationships ‘SalEquity Issue Debt < Buy Assats> -< Buy inventory > ‘Make Sales! < Pay Costs > ~ Pay interest > < Pay Dividends > Financial statements share information to Collectively present financial information *¢ etainprnts or “reay’ debt roll (wth interest and |p Weined orvings Statement” od{: Beginning RE (BRE) ‘Add: oF (035) tess: Bivens paid Be Seek cr Epenses Por OriseeseENeitecunancnen eee ano Yan.1 Pepi sane 9000 fant iurneetsperse 9000 con 9000 cash 900 Prepaid tree serpy Preparer poy bec31 inuancetapenie 3.00 ee31 Pepi isrance 60m Prepaid nuance 2400 nuance pense so oodustrepod sore Toot repaid insane torte exredprtan tore nepeorton (39,000/3 ($9,000 X 2/3 = $6,000) Insane sper Prepaid ance Inuroncsbspeie___ Prepaid narance a aco | 3000 900 | 5000 Balance Sheet A=L+E Liabilities (Debt) & Equity Current Assets Current Liabilities cash ‘Accounts Payable ‘Accrued Expenses ‘Accounts Receivable aot ear Inventories i i Prepaid Expenses Long-term notes Fixed Assets Mortgages ‘Machinery & Equipment Equity Buildings and Land Preferred Stock Other Assets ‘Common Stock (Par value) ‘1 Paid in Capital Copyrights, Goodwill & ‘eteinad barn patents letained Earnings Treasury Stock ‘TOTAL ASSETS ‘TOTAL LIABILITIES + EQUITY [ i} Jeauabce! seer pt NAME OF ORGANIZATION EFFECTIVE DATE OF BALANCE SHEET CURRENT ASSETS: ‘CASH MARKETABLE SECURITIES ACCOUNT RECEIVABLE ‘surPues InveNTORY PREPAID EXPENSES TOTAL CURRENT ASSETS: NON-CURRENT ASSETS: PROPERTY PLANT EQUIPMENT. PATENTS, LEGAL AND FILING FEES COPYRIGHTS ‘TRADEMARKS OTHER RIGHTS ‘TOTAL NON-CURRENT ASSETS: rom assets ) #60000 uaaiuiTies CURRENT LIABILITIES: ‘ACCOUNTS PAYABLE SHORT TERM NOTES PAYABLE ACCRUED LIABILITIES TOTAL CURRENT LIABILITIES: LONG TERM LIABILITIES: ‘LONG-TERM NOTES AND MORTGAGES BONDS pavaBLe PENSION PLAN OBLIGATIONS. TOTAL LONG TERM LIABILITIES: TOTAL LIABILITIES: ‘OWNERS EQUITY ‘owner's equity ‘COMMON STOCK ‘TREASURY STOCK RETAINED EARNINGS TOTAL OWNER’S EQUITY: fOTAL LIABILITIES AND OWNER'S EQUITIncome - Expense = Net Income outers 5 Ca xemasdl 1000 Debit-side account Credit-side account (assets, expenses) (liabilities, equity, income) Debiting | Crediting Debiting | Crediting Assets = Liability + Equity Be _ e= — q Sample Balance Sheet (Statement of Financial Position) Assets Liabilities Cash in Checking $10,000 Accounts payable $10,200 Accounts Receivable $1,000 Loan $5,000 Grants $8,000 Equity(Net Assets) Retained ea (program reserves) Total Assets $19,000 Total Liabilities and EquityBalance Sheet items 7 Liability accounts are Asset accounts are Mirror DEBITED when they || CREDITED when they are decreasing are decreasing Image Profit and Loss Statement Items. Income accounts are fj Expense accounts are DEBITED when they _ |] CREDITED when they are decreasing FINANCIAL STATEMENTS Retained Earnings Income Statement Statement Net income is needed to determine the ending balance in retained earnings. Statement of Cash Flows a J ™~ Operating activities J [ Investing activities | [ Financing activities | Tm oe 3