A friend who has established a new Pilates studio, Core Strength, has asked you to give some advice as to the contents of financial statements. Transactions of Core Strength include:

(a) contribution of cash by your friend to the business

(b) purchase of studio sound equipment on credit

(c) utility costs paid

(d) studio fees received in cash

(e) subscription to accounting software package

(f) rent of studio room paid for one year in advance

(g) money withdrawn by your friend to put a deposit on an apartment

(h) cash held by the business at the end of the year

(i) money borrowed for purchase of new equipment.

Required Indicate whether these items would appear in Core Strength’s statement of financial position, statement of financial performance, statement of changes in equity and/or statement of cash flows. For those items included in the statement of cash flows, indicate whether the item relates to operating activities, investing activities, or financing activities.