Ashmont Cycles Balance Sheet

as of December 31

2019 2020
Assets

Cash $8,000 $3,368

Accounts receivable $2,500 $2,200
Inventory $65,000 $71,500
Prepaid expenses $1,500 $1,800
Other current assets $500 $600
Total current assets $77,500 $79,468
Property, plant, and equipment $12,000 $17,400
Accumulated depreciation ($2,400) ($3,480)
Net property, plant, and equipment $9,600 $13,920
Total Assets $87,100 $93,388
Liabilities
Accounts payable $3,000 $3,200
Line of credit $10,000 $10,000
Current portion of long-term debt $4,000 $4,000
Accrued expenses $1,100 $1,100
Total Current Liabili ies $18,100 $18,300
Long-term debt $16,000 $12,000
Total Liabilities $34,000 $30,300
Owner’s Equity
Contributed capital $50,000 $50,000
Retained earnings $3,000 $13,088
Total Owner’s Equity $53,000 $63,088

Total Liabilities and Equity $87,100 $93,388

Beg RE $3,000
plus NI $10,088
equal subtotal $13,088
minus Dividends ?????
equal End. RE $12,000 $1,088
 Calculation for Indirect
Cash Flow Statement
Account in 20X3 – Account in 20X2

$2,200 – $2,500 = ($300) CFO

$71,500 – $65,500 = $6,500 CFO
$1,800 – $1,500 = $300 CFO operating
$600 – $500 = $100 CFO 4.342514
0.304262
$17,400 – $12,000 = $5,400 CFI
($3,480) – ($2,400) = ($1,080) CFO Investing

$3,200 – $3,000 = $200 CFO

$10,000 – $10,000 = $0 CFO
$4,000 – $4,000 = $0 CFO Operating
$1,100 – $1,100 = $0 CFO

$12,000 – $16,000 = ($4,000) CFF

Financing
$50,000 – $50,000 = $0 CFF
Dividends
CFO—Cash Flow from Operating Activities
CFI—Cash Flow from Investing Activities
CFF—Cash Flow from Financing Activities
 Ashmont Cycles Income Statement
for the year ended as of December 31, 2020
Sales $205,000 $205,000
Cost of goods sold (106,000) (106,000)
Gross Profit $99,000 $99,000

Operating Expense:
Selling, general , administrative costs (58,000) (58,000)
Utilities expense (6,960) (6,960)
Rent expense (16,240) (16,240)
Depreciation and amortization (1,080) Operating
Total operating expenses (82,280) (81,200)

Operating Income $16,720 $17,800

Interest income (expense) (1,200) (1,200)

Income before Income Taxes $15,520 $16,600 $1,080

Income taxes (35%) (5,432)
Net Income $10,088 Operating
Cash Flow from Operating Activities:
Net Income 10,088
Adjustments:
Depreciation and amortization $1,080
Decrease in accounts receivable $300
Increase in inventory ($6,500)
Increase in prepaid expenses ($300)
Increase in other current assets ($100)

Increase in accounts payable $200

Increase in line of credit $0
Increase in current portion of long-term debt $0
Increase in accrued expenses $0
Cash Flow from Operating Activities $4,768

Cash Flow from Investing Activities

Purchase of property, plant, and equipment ($5,400)
Cash Flow from Investing Activities ($5,400)

Cash Flow from Financing Activities

Payment of long-term debt ($4,000)

Increase in contributed capital $0
Dividends paid $0
Cash Flow from Financing Activities ($4,000)
Net Change in cash ($4,632)
Beginning Cash Balance $8,000
Ending Cash Balance $3,368
Income statement

Income statement or Balance sheet

From balance sheet : current assest & Current liabilities

($4,632)

$3,368
Operating: Noncash items
Increase in current assets are deducted
Decrease in Current assets are added

Increase in current liabilities are added

Decrease in Current liabilities are deducted

Operating