Answer:
<u>Horizontal statemtent:</u>
Assets = Liabilities + Equity
1) 30,000 = 0 + 30,000
2) 18,000- 18,000 = 0 + 0
3) 17,000 = 0 + 17,000
<u>Cash flow:</u>
+30,000 Financing
Operating
collected from customer 32,000
paid to suppliers (18,000)
net 14,000
total cash flow 44,000
Income statment
sales revenue 32,000
COGS (15,000)
income 17,000
Total assets: 47,000 (44,000 cash + 3,000 inventory)
Explanation:
assets:
1) +30,000 cash from common stock
2) 18,000 inventory - 18,000 cash = 0 effect on total assets
3) 32,000 cash - 15,000 inventory = 17,000
total assets: 30,000 + 17,000 = 47,000
