An example for statement of cash flows Accounting 2610 – Spring 2007 Class 25 The following are comparative balance sheets of Later Gator Lounge as of the end of 2003 and 2004: Later Gator Lounge Comparative Balance Sheets Dec. 31, 2003 Dec. 31, 2004 Assets Assets: Cash $12,800 $17,450 Marketable Securities 20,000 20,000 Accounts Receivable 15,000 17,500 Inventory 15,000 12,000 Interest Receivable 125 175 Property & Equipment - at cost 25,000 27,500 Less Accumulated depreciation (11,250) (14,000) Total Assets $76,675 $80,625 Liabilities and Equity Accounts payable - trade $7,800 $7,500 Salaries Payable 8,000 8,500 Rent Payable 500 250 Total Liabilities 16,300 16,250 Common Stock 25,000 25,000 Retained Earnings 35,375 39,375 Total Liabilities and Stockholders' Equity $76,675 $80,625Later Gator Lounge Income Statement For year ended December 31, 2004 Sales $74,500 Interest Revenue 1,500 $76,000 Expenses Cost of Goods Sold 25,000 Wages and Salaries Expense 30,500 Rent Expense 8,750 Depreciation Expense 2,750 Total (67,000) Net Income $9,000T-Accounts Accounts Receivable Interest Receivable Rent Payable 15,000 125 500 250 17,500 175 Accounts payable Inventory Salaries Payable 7,800 15,000 8,000 7,500 12,000 8,500Later Gator Lounge Statement of cash flows – Direct Method For year ended December 31, 2004 Cash Flows from Operating Activities Net Cash Flows from Operating Activities Cash Flows from Investing Activities Net Cash Flows from Investing Activities Cash Flows from Financing Activities Net Cash Flows from Financing Activities Net change in cash for the year Beginning cash balance Ending cash balanceLater Gator Lounge Statement of cash flows – Indirect Method For year ended December 31, 2004 Cash Flows from Operating Activities Net Cash Flows from Operating
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