A summary of cash flows for Absolute Consulting Group for the year ended July 31, 2012, is

Question:

A summary of cash flows for Absolute Consulting Group for the year ended July 31, 2012, is shown below.

Cash receipts:

Cash received from customers$187,500

Cash received from issuing additional capital stock 40,000

Cash payments:

Cash paid for operating expenses 127,350

Cash paid for land 30,000

Cash paid for dividends 5,000

The cash balance as of August 1, 2011, was $27,100. Prepare a statement of cash flows for Absolute Consulting Group for the year ended July 31, 2012.

1. Prepare a balance sheet as of December 31, 2012.

2. What item appears on both the retained earnings statement and the balance sheet?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...