Diamond Gem Cleaning and Maintenance Service

Balance Sheet
Year Ended December 31, 20XX
Polly's Pet Products

Balance Sheet as of December 31, 2018 Definition of balance sheet :

A balance sheet is financial statment that presents what a com
ASSETS

CURRENT ASSETS

Cash 90,000 cash balance at the end of the year

Accounts receivable 50,000
Other assets 25,000

Total current assets 165,000 cash +account receivables+ other assets ( 90 000

LONG TERM ASSETS

Fixed Assets 75,000

TOTAL ASSETS 240,000 Total assets = current assets +Fixed assets ( 165 0

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable 75,000

Accrued expenses 30,000 Total current liabilities -( accounts payable +incom
Income tax payable 5,000
Current portion of notes payable 12,000
Deferred income taxes 1,500

Total current liabilities 123,500

LONG TERM LIABILITIES

Notes payable (long term) 38,000 total liabilities minus total current liabilities

TOTAL LIABILITIES 161,500

STOCKHOLDERS' EQUITY

Common stock 5,000

Additional paid-in capital 15,000

Retained Earnings 103,500 retained earning coming from the income statement

Total stockholders' equity 78,500 Total assets = total liabilities + stakeho

 Diamond Gem Cleaning and Maintenance Service
Balance Sheet
Year Ended December 31, 20XX

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY 240,000 Total assets = total liabilities and stakeholder equi

The balance sheets is compose of two sides : assets side and liabilities side .
The balance sheet is balanced as total assets = total liabilities + stakeholders equity
 Diamond Gem Cleaning and Maintenance Service
Balance Sheet
Year Ended December 31, 20XX

ent that presents what a company has and what it owes to third parties at a sepecific date

d of the year

bles+ other assets ( 90 000+50 000+25000) =165 000

assets +Fixed assets ( 165 000+75 000) = 240 000

s -( accounts payable +income tax payable +current portion of notes payable + deferred incom taxes

total current liabilities

income statement

s = total liabilities + stakeholder equity therefore stakeholders equity = Total asset - total liabilities = 240 000-161 500 =78 500
 Diamond Gem Cleaning and Maintenance Service
Balance Sheet
Year Ended December 31, 20XX

bilities and stakeholder equity

 Diamond Gem Cleaning and Maintenance Service
Balance Sheet
Year Ended December 31, 20XX

500 =78 500

 Diamond Gem Cleaning and Maintenance Service
Statement of Income and Retained Earnings
Year Ended December 31, 20XX
Polly's Pet Products
Definition of income statement
Income Statement as of December 31, 2018
An income statement is a statement that sumrizes all expenditure

Revenues 650,000

Operating Costs 445,000 These costs are cost incurred during the exploitation

Gross Profit 205,000

General and Administrative Expenses 75,000

Operating Income 130,000 General and administrative expenses minus operating incom ( 20

Other Expense 60,000

Income Before Provision for Income Taxes 70,000 Operating income minus other expense (130 000-60 000)= 70 000

Provision for Income Taxes 5,000

Net Income 65,000 Income before tax minus provision for income tax (70 000-5000) =

Retained Earnings, Beginning Balance 103,500

Net Income 65,000 Net income

Retained Earnings, Ending Balance 168,500 retained earning at the begening balance + net income

Conclusion : the company has a positive result that means a profit

 Diamond Gem Cleaning and Maintenance Service
Statement of Income and Retained Earnings
Year Ended December 31, 20XX

ent that sumrizes all expenditures and incomes . Incomes statement indicate is a tool that enable managers to know if a company made a

ng the exploitation

nses minus operating incom ( 205000-75000) = 130 000

pense (130 000-60 000)= 70 000

on for income tax (70 000-5000) =65000

balance + net income

 Diamond Gem Cleaning and Maintenance Service
Statement of Income and Retained Earnings
Year Ended December 31, 20XX

w if a company made a profit or a loss

Polly's Pet Products Definition of statement of cashfow

Statement of Cash Flows as of December 31, 2018 A statement of cashflow explains all movements of cash that

Cash Flows from Operating Activities

Cash received from customers 600,000
Cash paid out to suppliers and employees 400,000 cash pail out to suppliers and employees is ou
Interest paid (5,000)
Taxes paid (10,000)
Net cash provided by operating activities 185,000

Cash Flows from Investing Activities

Purchase of fixed assets (25,000)
Net cash used in investing activities (25,000)

Cash Flows from Financing Activities

New loans 50,000
Repayments on loans (45,000)
Issuance of common shares of stock 5,000
Net cash provided by financing activities 100,000 it is the amount of all cash flow

Net change in Cash 60,000 net cash provided by operating

Cash balance, beginning of year 30,000

Cash balance, end of year 90,000 Net change in cash + cash balan

Conclusion : data provided in this statement explain that the company made a profit
ains all movements of cash that occured in a company

o suppliers and employees is outflow cash. It must be substracted to cash inflows ( 60000-(185000+10000+5000)

it is the amount of all cash flow from financing activities ( 50000+45000+5000)

net cash provided by operating activities minus cash used in investing activities and financing activities ( 185000-(100000+25000)= 60000

Net change in cash + cash balance , end of year ( 60 000+30 000) = 90 000
(100000+25000)= 60000