44 Chapter 1 The Role of Accounting in Business
Zeppelin Realty
Retained Earnings Statement
For the Month Ended November 30, 2006Net income for November $ (c)
Less dividends 6,000
Retained earnings, November 30, 2006 $ (d)Zeppelin Realty
Balance Sheet
November 30, 2006Assets
Cash $ 5,800
Supplies 2,200
Land 40,000
Total assets $ (e)Liabilities
Accounts payable $ 1,600Stockholders’ Equity
Capital stock $ (f)
Retained earnings (g) (h)
Total liabilities and stockholders’ equity $ (i)Zeppelin Realty
Statement of Cash Flows
For the Month Ended November 30, 2006Cash flows from operating activities:
Cash received from customers $ (j)
Deduct cash payments for expenses and
payments to creditors 18,200
Net cash flows from operating activities $ (k)
Cash flows from investing activities:
Cash payments for acquisition of land (l)
Cash flows from financing activities:
Cash received from issuing capital stock $ (m)
Deduct cash dividends (n)
Net cash flows from financing activities (o)
Net cash flow and November 30, 2006, cash balance $ (p)