Question:
The
financial statements at the end of Flagstone Consulting, Inc.s first month of operation are shown below. By analyzing the interrelationships between the
financial statements, fill in the proper amounts for (a) through(t).
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Transcribed Image Text:
Flagstone Consulting, Inc. Income Statement For the Month Ended June 30, 2007 Fees earned Operating expenses: Wages expense Rent expense Utilities expense Interest expense Miscellaneous expense $13,500 8,400 5.700 1,800 Total operating expenses Net income Flagstone Consulting, Inc. Retained Earnings Statement For the Month Ended June 30, 2007 S (c) Retained earnings, June 1, 2007 Net income for June Less dividends s (d) Retained earnings, June 30, 2007 Flagstone Consulting, Inc. Balance Sheet June 30, 2007 $ (h) 54,000 $139,500 Total assets Liabilities Notes payable 45,000 Stockholders' Equity Capital stock Retained earnings Total llablities and stockholders' equity 75,000 Flagstone Consulting, Inc. Statement of Cash Flows For the Month Ended June 30, 2007 Cash flows from operating activities: Cash received from customers Deduct cash payments for expenses Net cash flows from operating activities 25,500 Cash flows from investing activities Cash payment for purchase of land S(54,000) Cash flows from financing activities Cash recelved from sale of capital stock Cash recelved from notes payable Deduct cash dividends Net cash flows from financing activities S (n) 6,000 Net increase in cash June 1, 2007, cash balance June 30, 2007, cash balance S (t)