EZ Accounting

EXAMPLE 1
John Doe DBA XYZ Machinery Statement of Cash Flows Year Ended December 31, 20xx
Cash Flows From Operating Activities
Net income	$46,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,750
Decrease in accounts receivable	10,250
Decrease in inventory	6,050
(Increase) in prepaid expenses	(250)
Increase in accounts payable	9,120
(Decrease) in accrued salaries payable	(5,050)
Increase in other accrued liabilities	12,500
Net Cash Provided By Operating Activities	91,370
Cash Flows From Investing Activities
Acquisition of equipment and furniture	(50,058)
Net Cash (Used) By Investing Activities	(50,058)
Cash Flows From Financing Activities
Capital contributions	15,000
Owner withdrawals	(55,000)
Proceeds from long-term borrowings	25,000
Debt reduction	(27,500)
Net Cash (Used) By Financing Activities	(42,500)
Net (Decrease) In Cash	(1,188)
Cash At Beginning Of Year	11,188
Cash At End Of Year	$ 10,000
For Demonstration Purposes Only

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