84 Chapter 2 Basic Accounting Concepts
Sciatic Realty, Inc.
Statement of Cash Flows
For the Month Ended July 31, 2007Cash flows from operating activities:
Cash received from customers $ 19,500
Deduct cash payments for expenses 11,250
Net cash flows from operating activities $ (m)
Cash flows from investing activities:
Cash payment for purchase of land $(30,000)
Cash flows from financing activities:
Cash received from sale of capital stock $15,000
Cash received from notes payable (n) $ (o)
Deduct cash dividends 1,500
Net cash flows from financing activities ( p)
Net increase in cash $ (q )
July 1, 2007, cash balance ( r )
July 31, 2007, cash balance $ ( s )Sciatic Realty, Inc.
Balance Sheet
July 31, 2007Assets
Cash $ (h)
Land 30,000
Total assets $39,750Liabilities
Notes payable $18,000Stockholders’ Equity
Capital stock $ ( i )
Retained earnings ( j) (k)
Total liabilities and stockholders’ equity $ ( l )Sciatic Realty, Inc.
Retained Earnings Statement
For the Month Ended July 31, 2007Retained earnings, July 1, 2007 $ (d )
Net income for July $8,250
Less dividends (e) (f )
Retained earnings, July 31, 2007 $ (g)