BALANCE SHEET

$ Change from % Change from

12/31/2014 12/31/2015 2014 to 2015 2014 to 2015
ASSETS:
Current Assets:
Cash and cash equivalents $ 400,000 $ 601,000 $ 201,000 50%
Short-term investments $ 900,000 $ 899,000 $ (1,000) 0%
Accounts receivable $ 180,000 $ 230,000 $ 50,000 28%

Assets
Inventory
Total Current Assets
$
$
20,000
1,500,000
$
$
45,000
1,775,000
$
$
25,000
275,000
125%
18%

=
Long Term Assets:
depreciation
Land
$
$
100,000
15,000
$
$
95,000
25,000
$
$
(5,000)
10,000
-5%
67%
Machine $ - $ 50,000 $ 50,000 N/A
Total Long Term Assets $ 115,000 $ 170,000 $ 55,000 48%
Total Assets $ 1,615,000 $ 1,945,000 $ 330,000 20%

LIABILITIES & EQUITY:

Current Liabilities:
Accounts payable $ 30,000 $ 35,000 $ 5,000 17%

Liabilities
Short-term debt
Total Current Liabilities
$
$
100,000
130,000
$
$
90,000
125,000
$
$
(10,000)
(5,000)
-10%
-4%

+Long Term Liabilities:

Long-term debt $ 1,000,000 $ 900,000 $ (100,000) -10%

Equity
Total Liabilities

Equity:
$ 1,130,000 $ 1,025,000 $ (105,000) -9%

Retained Earnings $ 470,000 $ 845,000 $ 375,000 80%

Common Shares $ 15,000 $ 75,000 $ 60,000 400%
Total Equity $ 485,000 $ 920,000 $ 435,000 90%
Total Liabilities and Equity $ 1,615,000 $ 1,945,000 $ 330,000 20%

Does Assets = Liabilities + Equity? Yes the Yes the balance

balance sheet sheet balances.
balances.
Cash Flow Statement Exercise

In the white boxes below are cash flow statement items for 2015

Step 1: Copy and paste all items in the white boxes below into the correct white boxes on the next tab in
columns B and D (the 'Questions' tab).

Step 2: Make sure that the Total Change in Cash Flow must = the 2015 Balance Sheet cash balance (which is $201,000 from

Step 3: In column F, please state what the source of the line item is. Please chose one of the following:

Balance Sheet (Current Assets)

Balance Sheet (Current Liabilities)
Balance Sheet (Equity)
Balance Sheet (Long Term Assets)
Balance Sheet (Long Term Liabilities)
Income Statement

Step 4: Check to see if your answers are correct on the "Answers" tab.

Cash Flow Statement Items (sorted alphabetically 12/31/2016

Depreciation & Amortization $ 5,000
Increase in Accounts Payable $ 15,000
Increase in Accounts Receivable $ (170,000)
Increase in Common Shares $ 10,000
Increase in Inventory $ (647,125)
Increase in Long Term Debt $ 300,000
Increase in Short Term Debt $ 30,750
Land $ -
Machine $ -
Net Income $ 157,875
CASH FLOW STATEMENT

12/31/2016
CASH FLOW FROM OPERATIONS

Total Cash Flow from Operations $ -

CASH FLOW FROM INVESTING

Total Cash Flow from Investing $ -

CASH FLOW FROM FINANCING

Total Cash Flow from Financing $ -

Total Change in Cash Flow $ -

Please Note: the Total Change

in Cash Flow must = the 2016
Balance Sheet cash balance -
the 2015 Balance Sheet cash
balance (which equals -
CASH FLOW STATEMENT

12/31/2016
CASH FLOW FROM OPERATIONS
Net Income $ 157,875
Depreciation & Amortization $ 5,000
Increase in Accounts Receivable $ (170,000)
Increase in Inventory $ (647,125)
Increase in Accounts Payable $ 15,000 Balance Sheet (Current Liabilities)
Total Cash Flow from Operations $ (639,250)

CASH FLOW FROM INVESTING

Land $ - Balance Sheet (Long Term Assets)
Machine $ - Balance Sheet (Long Term Assets)
Total Cash Flow from Investing $ -

CASH FLOW FROM FINANCING

Increase in Short Term Debt $ 30,750 Balance Sheet (Current Liabilities)
Increase in Long Term Debt $ 300,000 Balance Sheet (Long Term Liabilities)
Increase in Common Shares $ 10,000
Total Cash Flow from Financing $ 340,750

Total Change in Cash Flow $ (298,500)

Please Note: the Total

Change in Cash Flow must =
the 2016 Balance Sheet cash
balance - the 2015 Balance
Sheet cash balance (which