If Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year. The income statement, capital statement, balance sheet, and statement of cash flows for B&B’s 2016 fiscal year are:
- Capital statement: Busby $51,440, Beatty $77,660
- Balance sheet : Total Assets $129,100, Total Liabilities and Equity $129,100
- Statement of cash flows for B&B’s $129,100
a. Income Statement
Income Statement for the year ended December 31, 2016
Cash Revenues $42,000
Less: Cash Expenses ($18,400)
Net Income $23,600
($42,000-$18,400)
b. Capital statement
Capital Statement for the year ended December 31, 2016
Busby Beatty
Beginning Capital Balance $44,000 $66,000
Less:- Withdrawal ($2,000) ($2,500)
Add:- Net Income $9,440 $14,160
[$44,000/($44,000+$66,000)×$23,600=$9,440]
[$66,000/($44,000+$66,000)×$23,600=$14,160]
Ending Capital Balance $51,440 $77,660
c. Balance Sheet
Balance Sheet As of December 31, 2016
Assets
Cash $129,100
($51,440+$77,660)
Total Assets $129,100
Liabilities
Equity
Busby $51,440
Beatty $77,660
Total Liabilities and Equity $129,100
d. Cash Flow Statement
Cash Flow Statement for the year ended December 31, 2016
Cash Flows from Operating Activities:
Revenue from Operations $42,000
Operating Expenses ($18,400)
Net Cash flow from operating activities $23,600
($42,000-$18,400)
Net Cash flow from Investing activities $0
Cash Flows from Financing Activities
Proceeds from Partners $110,000
($44,000+$66,000)
Withdrawal by Partners ($4,500)
($2,000+$2,500)
Net cash flow from financing activities $105,500
($110,000-$4,500)
Net cash change $129,100
($23,600+$0+$105,500)
Opening cash balance $0
Ending Cash Balance $129,100
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