Chapter 3 Accrual Accounting Concepts 127Cash flows from operating activities:
Cash received from patients $15,300
Deduct cash payments for expenses (6,540)
Net cash flows from operating activities $ 8,760
Cash flows from financing activities:
Deduct cash dividends (1,200)
Net increase in cash $ 7,560
December 1, 2007, cash balance 7,730
December 31, 2007, cash balance $15,290
Assets
Current assets:
Cash $15,290
Accounts receivable 5,700
Prepaid insurance 6,200
Supplies 215
Total current assets $27,405
Fixed assets:
Office equipment $8,500
Less accumulated depreciation 320 $ 8,180
Land 12,000
Total fixed assets 20,180
Total assets $47,585
Liabilities
Current liabilities:
Accounts payable $ 230
Wages payable 340
Notes payable 6,800
Unearned revenue 1,080
Total current liabilities $ 8,450
Long-term liabilities:
Notes payable 10,000
Total liabilities $18,450
Stockholders’ Equity
Capital stock $11,000
Retained earnings 18,135
Total stockholders’ equity 29,135
Total liabilities and stockholders’ equity $47,585
Family Health Care, P.C.
Statement of Cash Flows
For the Month Ended December 31, 2007Family Health Care, P.C.
Balance Sheet
December 31, 2007