the financial statements at the end of spratlin consulting rsquo s first month of op 636906

Spratlin Consulting
Income Statement
For the Month Ended June 30, 2004

Fees earned

$36,000

Operating expenses:

Wages expense

$12,000

Rent expense

7,640

Utilities expense

(a)

Miscellaneous expense

1,320

Total operating expenses

23,120

Net income

(b)

Spratlin Consulting
Retained Earnings Statement
For the Month Ended June 30, 2004

Net income for June

(c)

Less dividends

(d)

Retained earnings, June 30, 2004

(e)

Spratlin Consulting
Balance Sheet
June 30, 2004

Assets

Cash

$ 5,600

Land

50,000

Total assets

(f )

Liabilities

Accounts payable

$ 1,920

Stockholders’ Equity

Capital stock

(g)

Retained earnings

(h)

Total stockholders’ equity

( i )

Total liabilities and stockholders’ equity

j

Spratlin Consulting
Statement of Cash Flows
For the Month Ended June 30, 2004

Cash flows from operating activities:

Cash received from customers .

$36,000

Deduct cash payments for operating expenses

(k)

Net cash flow from operating activities . .

$14,160

Cash flows from investing activities:

Cash payments for acquisition of land .

( l )

Cash flows from financing activities:

Cash received from issuing capital stock .

$48,000

Deduct dividends . .

7,200

Net cash flow from financing activities . .

(m)

Net cash flow and June 30, 2004 cash balance

(n)