10.

Cash Flow Statement:

Revenues collected 700,000.00
Expenses paid -300,000.00
Drawings -20,000.00
Equipment acquired -150,000.00
Bank Loan Paid and interest -155,000.00
Net Cash Inflow 75,000.00
Add Cash Balance last month 750,000.00
Cash Balance this month 825,000.00

The cash target is off mark.

11
Revenues 800,000.00
Expenses 355,000.00
Net Income 445,000.00

12
Owner’s Equity, beg. 1,250,000.00
Add Net Income 445,000.00
Less Drawings - 20,000.00
Owner’s Equity, end 1,675,000.00