Refer to the transactions for Krittersbegone Inc. in Problem 3-7A.

Required

1. Prepare journal entries on the books of Krittersbegone to record the transactions entered into during the month. Ignore depreciation expense.

2. Prepare a classified balance sheet dated July 31, 2010. From the balance sheet, what cash inflow and what cash outflow can you predict in the month of August? Who would be interested in the cash flow information? Why? Decision Cases Reading and Interpreting Financial Statements Decision Case 3-1 Comparing Two Companies in the Same Industry: Kellogg’s and General Mills Refer to the income statements for Kellogg’s and General Mills reproduced at the end of the book.