ask Team of FUNDAMENTAL ACCOUNTING School of Business Sun Yat-sen University Beauty Photo Store Statement of Owner's Equity For month ended January 31, 2005 wang Fang, capital, January 1 Add Inves tment by owner s 30,000 Net income 32,400 Total 32,400 Less: Withdrawal by owner 600 Wang Fang, capital, January 31 31,800 Beauty Photo State me nt of cash Flows For Month Ended January 31. 2005 Cas h flows from operating activities Cash received from clients S4.100 Cash paid for supplies (2,500) Cash paid for rent (1,000) Cas h paid to employee Net cash used by operating acitivities S(100) Cash flows from inves ting activities: Purchase of equipment S(20.000 Net cash used by inves ting activiti (20,000) Cash flows from financing activities Inves tment by owner S30.000 Partial re payment of note Withdrawal by owner Net cash provided by financing activities 28,500 Net increase in cas h Cash balance. January 1 Cash balance, January 31 Additional examples(if there is some extra time): The following are three financial statements of Tony Blow Corporation. Please take time to review these statements, noting carefully how the net income on the income statement flows through to the statement of retained earnings, and how the ending retained earnings flows through to the balance sheet Tony Blow Corporation For the year ending December 31, 20X3 R $750.000 Interest income 15.000 Total $765,00 Expenses $235,000Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University Additional examples (if there is some extra time): The following are three financial statements of Tony Blow Corporation. Please take time to review these statements, noting carefully how the net income on the income statement flows through to the statement of retained earnings, and how the ending retained earnings flows through to the balance sheet. Tony Blow Corporation Income Statement For the year ending December 31, 20X3 Revenues Services to customers $750,000 Interest income 15,000 Total revenues $765,000 Expenses Salaries $235,000 wang Fang, capital, January 1 $ - Add: Investment by owner $ 30,000 Net income 2,400 32,400 Total 32,400 Less: Withdrawal by owner 600 Wang Fang, capital, January 31 $ 31,800 Beauty Photo Store Statement of Owner's Equity For month ended January 31,2005 Cash flows from operating activities: Cash received from clients $ 4,100 Cash paid for supplies (2,500) Cash paid for rent (1,000) Cash paid to employee (700) Net cash used by operating acitivities $ (100) Cash flows from investing activities: Purchase of equipment $ (20,000) Net cash used by investing activities (20,000) Cash flows from financing activities: Investment by owner $ 30,000 Partial repayment of note (900) Withdrawal by owner (600) Net cash provided by financing activities 28,500 Net increase in cash $ 8,400 Cash balance, January 1 - Cash balance, January 31 $ 8,400 Beauty Photo Store Statement of Cash Flows For Month Ended January 31, 2005