【正文】 le Exercise 15 continued Follow My Example 15 5 For Practice: PE 15A, PE 15B 177 Adam Cellini, capital, May 1, 2022 $ 80,000 Additional investment by owner during year $ 50,000 Net ine for the year 55,550 $105,550 Less withdrawals 30,000 Increase in owner’s equity 75,550 Adam Cellini, capital, April 30, 2022 $155,550 178 178 78 A balance sheet is a list of the assets, liabilities, and owner’s equity as of a specific date. 5 Balance Sheet 179 179 79 The account form of a balance sheet lists the assets on the left and the liabilities and owner’s equity on the right— similar to the design of an account. 5 Account Form 180 180 80 This amount is pared to the cash flow on the statement of cash flows. From the statement of owner’s equity 5 Exhibit 6 Financial Statements for NetSolutions (continued) 81 Balance Sheet Using the data for Chickadee Travel Service shown in Example Exercises 14 and 15, prepare the balance sheet as of April 30, 2022. Example Exercise 16 5 181 82 Example Exercise 16 (continued) 5 For Practice: PE 16A, PE 16B CHICKADEE TRAVEL SERVICE BALANCE SHEET April 30, 2022 Assets Liabilities Cash $ 53,050 Accounts payable $ 12,200 Accounts receivable 31,350 Supplies 3,350 Owner’s Equity Land 80,000 Adam Cellini, capital 155,550 Total assets $167,750 Total liab. amp。 owner’s eq. $167,750 182 Follow My Example 13 Follow My Example 16 183 183 83 A statement of cash flows is a summary of the cash receipts and payments for a specific period of time. It consists of three sections: (1) operating activities, (2) investing activities, and (3) financing activities. 5 Statement of Cash Flows 184 184 84 This amount should match Cash on the balance sheet. 5 Financial Statements for NetSolutions (continued) Exhibit 6 185 185 85 The cash flows from operating activities section reports a summary of cash receipts and cash payments from operations. 5 Operating Activities 186 186 86 The cash flows from investing activities section reports the cash transactions for the acquisition and sale of relatively permanent assets. 5 Investing Activities 187 187 87 The cash flows from financing activities section reports the cash transactions related to cash investments by the owner, borrowings, and withdrawals by the owner. 5 Financing Activities 88 Statement of Cash Flows A summary of cash flows for Chickadee Travel Service for the year ended April 30, 2022, is shown below. Cash receipts: Cash received from customers $251,000 Cash received from additional investment of owner 50,000 Cash payments: Cash paid for expenses 210,000 Cash paid for land 80,000 Cash paid to owner for personal use 30,000 The cash balance as of May 1, 2022, was $72,050. Prepare a statement of cash flows for Chickadee Travel Service for the year ended April 30, 2022. Example Exercise 17 5 188 89 Cash flows from operating activities: Cash received from customers $251,000 Deduct cash payments for expenses 210,000 Net cash flows from operating activities $ 41,000 Cash flows from investing activities: Cash payments for purchase of land (80,000) Cash flows from financing activities: Cash received from owner as investment $ 50,000 Deduct cash withdrawals by owner 30,000 Net cash flows from financing activities 20,000 Net decrease in cash during year $(19,000) Cash as of May 1, 2022 72,050 Cash as of April 30, 2022 $ 53,050 Example Exercise 17 (continued) 5 189 For Practice: PE 17A, PE 17B Follow My Example 13 Follow My Example 17 190 190 90 ? The ine statement and the statement of owner’s equity are interrelated. Net ine or loss appears on both statements. Interrelationships Among Financial Statements 5 191 191 91 ?The statement of owner’s equity and the balance sheet are interrelated. The owner’s capital at the end of the period on the statement of owner’s equity also appears on the balance sheet as owner’s capital. Interrelationships Among Financial Statements 5 192 192 92 ? The balance sheet and the statement of cash flows are interrelated. The cash reported on the balance sheet is also reported as the endofperiod cash on the statement of cash flows. Interrelationships Among Financial Statements 5 193 193 93 Financial Analysis and Interpretation Ratio of Liabilities to Owner’s Equity = Total Liabilities Total Owner’s Equity (or Total Stockholders’ Equity) For NetSolutions: Ratio of Liabilities to Owner’s Equity = $400 $26,050 = 5 194 194 94