Transactions for each year 1. Raw materials are purchased for cash 2. Raw materials stolen/wasted are expensed as COGS 3. Raw materials are sent to work in process 4. Laborers work in manufacturing. They are paid in cash. 5. Depreciation of manufacturing equipment 6. Utilities used for manufacturing are paid in cash | 7. Salaries for production supervisors are paid in cash 8. Cost of goods manufactured: Moved from WIP to FGI 9. Cost of goods sold {in addition to theft/waste) 10. Revenues are earned and received in cash 11. SG&A costs are incurred and paid in cash Y1 71.00 9.00 53.00 22.00 15.00 22.00 19.00 97.00 69.00 109.00 15.00 Statements Change in balance sheet Cash Year 1 5 6 1 2 3 4 7 8 9 10 11 Sum S 200.00 PP&E: Cost Less: Accumulated depreciation Retained earnings Check Income statement 40.00 5.00 235.00 nene Cash flow statement Adjustments Check 200.00 Year 1 Ending Balance Sheet Cash Raw materials inventory Work in process inventory Finished goods inventory Gross PP&E Accumulated depreciation (Positive number. Subtract while computing total assets) Retained earnings Income Statement Sales COGS [Positive number] SG&A expenses [Positive number] Indirect Cash Flow Statement Adjustments for [Put minus sign (-) before negative adjustments] (Change) in raw materials inventory (Change) in work in process inventory (Change) in finished goods inventory Depreciation