ASSETS LIABILITIES OWNERS' EQUITY

EQPT/
INVENTORY ACCOUNTS INTEREST ACCOUNTS EXPENSES
CASH FURNITUR LOAN CAPITAL
(CARS) RECEIVABLE PAYABLE PAYABLE PAYABLE
E

CAPITAL CONTRIBUTION 600,000 600,000

LOAN PROCEEDS 200,000 200,000
PURCHASE OF EQPT &
-250,000 250,000
FURNITURE
PURCHASE OF CARS -1,800,000 3,000,000 1,200,000
CASH RECD. FROM SALE
2,200,000 500,000
OF CARS

CASH RECD FROM

50,000
SERVICING/ACCESSORIES

RENT, SALARY ETC. PAID -350,000 50,000

-2,300,000
-14,583
11,667
Balances (July-31) 650,000 235,417 700,000 500,000 200,000 11,667 1,200,000 50,000 600,000

2,085,417 2,085,417
NERS' EQUITY
RETAINED
EARNINGS/PROFIT
AND LOSS
(REVENUES -
EXPENSES)

2,700,000 REVENUES (SALE OF CARS)

50,000 OTHER REVENUES

-400,000 OPERATING EXPENSES

-2,300,000 COST OF CARS SOLD
-14,583 DEPRECIATION EXPENSE
-11,667 INTEREST EXPENSE
23,750
 Income Statement of 'AJ Auto Dealership' for the period
Cash Flow Statement of 'AJ Auto Dealership' for the period January 1 to July 31, 2023
January 1 to July 31, 2023
Amount Amount Amount Amount
CASH FLOWS FROM OPERATING ACTIVITIES REVENUES (SALE OF CARS) 2,700,000
PURCHASE OF CARS -1,800,000 OTHER REVENUES 50,000 2,750,000
CASH RECD. FROM SALE OF CARS 2,200,000 Less: Expenses
CASH RECD FROM SERVICING/ACCESSORIES 50,000 OPERATING EXPENSES -400,000
RENT, SALARY ETC. PAID -350,000 100,000 COST OF CARS SOLD -2,300,000
DEPRECIATION EXPENSE -14,583
CASH FLOWS FROM INVESTING ACTIVITIES INTEREST EXPENSE -11,667 -2,726,250
PURCHASE OF EQPT & FURNITURE -250,000 PROFIT/LOSS 23,750

CASH FLOWS FROM FINANCING ACTIVITIES

CAPITAL CONTRIBUTION 600,000
LOAN PROCEEDS 200,000 800,000
NET CHANGE IN CASH 650,000
OPENING BALANCE OF CASH 0
CLOSING BALANCE OF CASH 650,000

Balance Sheet of 'AJ Auto Dealership' as on July 31, 2023

Assets Liabilities + Owners' Equity
CASH 650,000 INTEREST PAYABLE 11,667
INVENTORY (CARS) 700,000 ACCOUNTS PAYABLE 1,200,000
ACCOUNTS RECEIVABLE 500,000 EXPENSES PAYABLE 50,000
EQPT/FURNITURE 235,417 LOAN 200,000
OWNERS' EQUITY
CAPITAL 600,000
RETAINED EARNINGS 23,750
2,085,417 2,085,417
 Cash Flow Statement of 'AJ Auto Dealership' for the period January 1 to July 31, 2023
(Indirect Method)
Amount Amount
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME 23,750
ADD: DEPRECIATION EXPENSE 14,583
ADD: INTEREST EXPENSE 11,667
CHANGE IN INVENTORY (CARS) -700,000
CHANGE IN ACCOUNTS RECEIVABLE -500,000
CHANGE IN ACCOUNTS PAYABLE 1,200,000
CHANGE IN EXPENSES PAYABLE 50,000 100,000

CASH FLOWS FROM INVESTING ACTIVITIES

PURCHASE OF EQPT & FURNITURE -250,000

CASH FLOWS FROM FINANCING ACTIVITIES

CAPITAL CONTRIBUTION 600,000
LOAN PROCEEDS 200,000 800,000
NET CHANGE IN CASH 650,000
OPENING BALANCE OF CASH 0
CLOSING BALANCE OF CASH 650,000