Tiger, Inc.
Balance Sheet
As of 12/31/18 As of 12/31/19
Cash $350,000 $650,000
A/R $200,000 $250,000
Total Assets $550,00 $900,000
liabilities
A/P $200,000 $350,000
Total Liabilities $200,000 $350,000
Owner's Equity
C/S- Par $1 $1
APIC- C/S $299,999 $299,999
Retained Earnings $60,000 $260,000
Total owner's equity $360,000 $560,000
Total L + E $560,000 $910,000
Additional Information
Tiger, Inc. had $200,000 of net income for the year ended 12/31/19
Step 1:
Based on the beginning and ending cash balances, cash increased by $300,000. Therefore, we are ready to enter this into the statement:
Step 2:
Once we add cash flows from operating, investing and financing activities, the net increase in cash must equal $300,000. Next we need to determine what T-Accounts need to be created and what sections each T-Account belongs in (operating, investing, financing). We prepare the T-Accounts by inputting the beginning and ending balances. In addition, create a cash T-Account without inputting the cash balances.
Step 3:
Determine the changes in each one of the accounts. Then do the opposite to the cash T-Account (if you credit accounts receivable, then you debit cash).
Step 4:
As we can see, the total increase to cash was $300,000. Now we can input the information to the cash flow statement.
