[The following information applies to the questions displayed below.] Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2021. Accounts Payable Accounts Receivable Cash (balance on September 1, 2020) Cash (balance on August 31, 2021) Common Stock Dividends Equipment Notes Payable Office Expense Prepaid Rent Retained Earnings (beginning) Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Supplies Utilities Expense Other cash flow information: Additional investments by stockholders Cash paid to purchase equipment Cash paid to suppliers and employees Repayments of borrowings Cash received from customers Cash received from borrowings Dividends paid in cash PB1-3 (Algo) Part 4 $162,000 32,000 92,000 110,000 100,000 15,000 772,000 47,000 180,000 77,000 427,000 1,040,000 187,000 1,967,000 49,000 615,000 $ 51,000 61,000 1,540,000 172,000 1,746,000 9,000 15,000 < Prev and Evaluating Financial Statements [LO 1-2, 4. Prepare a statement of cash flows for the fiscal year ended August 31, 2021. (Cash outflows should be entered as negative 10 of 10 Next
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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Required information
Reporting Amounts on the Four Basic Financial Statements and Evaluating Financial Statements [LO 1-2,
LO 1-3]
[The following information applies to the questions displayed below.]
Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2021.
Accounts Payable
Accounts Receivable
Cash (balance on September 1, 2020)
Cash (balance on August 31, 2021)
Common Stock
Dividends
Equipment
Notes Payable
Office Expense
2
Prepaid Rent
Retained Earnings (beginning)
Salaries and Wages Expense
Salaries and Wages Payable
Sales Revenue
Supplies
Utilities Expense
@
Other cash flow information:
Additional investments by stockholders
Cash paid to purchase equipment
Cash paid to suppliers and employees
Repayments of borrowings
PB1-3 (Algo) Part 4
Cash received from customers
O Cash received from borrowings.
Dividends paid in cash
W
S
X
4. Prepare a statement of cash flows for the fiscal year ended August 31, 2021. (Cash outflows should be entered as negative
10 of 10
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$162,000
32,000
92,000
110,000
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100,000
15,000
772,000
47,000
180,000
77,000
427,000
1,040,000
187,000
1,967,000
49,000
615,000
$ 51,000
61,000
T
1,540,000
172,000
1,746,000
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