{"id":4095,"date":"2020-10-25T02:51:50","date_gmt":"2020-10-25T02:51:50","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-financialaccounting\/?post_type=chapter&#038;p=4095"},"modified":"2020-11-18T17:59:42","modified_gmt":"2020-11-18T17:59:42","slug":"using-a-worksheet-indirect-method","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/chapter\/using-a-worksheet-indirect-method\/","title":{"raw":"Using a Worksheet (Indirect Method)","rendered":"Using a Worksheet (Indirect Method)"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Demonstrate the use of a worksheet to create the Statement of Cash Flows<\/li>\r\n<\/ul>\r\n<\/div>\r\nIn order to ensure accuracy and make the process as efficient as possible, accountants have developed a worksheet process to create the statement of cash flows. We\u2019ll demonstrate that process here using the indirect method because that is its most common use and the indirect method is the most common presentation.\r\n\r\nFirst, we look at the beginning and ending balance sheets:\r\n<table class=\"fin-table gridded\"><caption>RUMBLE CORP\r\nSpreadsheet for Statement of Cash Flows\r\nYear Ended December 31, 20X1<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"2\" scope=\"col\">Panel A - Balance Sheet<\/th>\r\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\r\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\r\n<th rowspan=\"2\">12\/31\/X1<\/th>\r\n<\/tr>\r\n<tr>\r\n<th>Debit<\/th>\r\n<th>Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Cash<\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">5,040<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Receivable<\/td>\r\n<td class=\"r\">1,750<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,735<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Equipment<\/td>\r\n<td class=\"r\">24,500<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">24,920<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accumulated Depreciation<\/td>\r\n<td class=\"r\">(1,540)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(1,565)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Assets<\/td>\r\n<td class=\"r\">26,350<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">30,130<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Payable<\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(1,039)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Wages Payable<\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(135)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Income Taxes Payable<\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(60)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Note Payable - Long Term<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(1,734)<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Common Stock<\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(13,500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Retained Earnings<\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(14,896)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities and Stockholders' Equity<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(30,130)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">0<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nWe\u2019re showing credit balances on this spreadsheet as negative numbers (in parenthesis), but different accountants may do this differently. Also notice the December 31, 20X0 balance is presented as the January 1, 20X1 balance. Again, that is personal preference.\r\n\r\nWe\u2019ll add a template to the bottom of this balance sheet spreadsheet that we will use to capture the changes in cash:\r\n<table class=\"fin-table gridded\">\r\n<tbody>\r\n<tr>\r\n<th style=\"width: 606.5px;\" colspan=\"4\">Panel B \u2013 Statement of Cash Flows<\/th>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Cash Flows from Operating Activities:<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Net Income<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Depreciation Expense - Plant Assets<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Decrease in accounts receivable<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Gain on sale of equipment<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Increase in Accounts Payable<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Increase in Wages Payable<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Increase in Income Taxes Payable<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Net Cash Provided by Operating Activities<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Cash Flows from Investing Activities:<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Cash Paid for Acquisition of Plant Assets<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Proceeds from sale of equipment<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Net Cash Used for Investing Activities<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Cash Flows from Financing Activities:<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Cash Receipt from Issuance of Common Stock<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Proceeds from issuance of long-term debt<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Cash Payment of Dividends<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Net Cash Provided by Financing Activities<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Net Increase (Decrease) in Cash:<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\">Total<\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 496.5px;\"><\/td>\r\n<td style=\"width: 11.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\"><\/td>\r\n<td style=\"width: 50.5px;\">-<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nAnd now we fill in the worksheet one line at a time, starting with accounts receivable.\r\n\r\nEvery debit will have to have a credit. Accounts receivable decreased by $15, so we credit that account on the spreadsheet and debit the corresponding line on the statement of cash flows.\r\n<table class=\"fin-table gridded\"><caption>RUMBLE CORP\r\nSpreadsheet for Statement of Cash Flows\r\nYear Ended December 31, 20X1<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"2\" scope=\"col\">Panel A - Balance Sheet<\/th>\r\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\r\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\r\n<th rowspan=\"2\">12\/31\/X1<\/th>\r\n<\/tr>\r\n<tr>\r\n<th>Debit<\/th>\r\n<th>Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Cash<\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Receivable<\/td>\r\n<td class=\"r\">1,750<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">15<\/td>\r\n<td class=\"r\">1,735<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Equipment<\/td>\r\n<td class=\"r\">24,500<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">24,500<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accumulated Depreciation<\/td>\r\n<td class=\"r\">(1,540)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(1,540)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Assets<\/td>\r\n<td class=\"r\">26,350<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\">26,335<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Payable<\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Wages Payable<\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Income Taxes Payable<\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Note Payable - Long Term<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">0<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Common Stock<\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Retained Earnings<\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities and Stockholders' Equity<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\">(15)<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"\">Panel B - Statement of Cash Flows<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Income<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Depreciation Expense - Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Decrease in Accounts Receivable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">15<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Gain on sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Accounts Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Wages Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Income Taxes Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Used for Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Receipt from Issuance of Common Stock<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from issuance of long-term debt<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Payment of Dividends<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Increase (Decrease) in Cash<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><strong>$ 15<\/strong><\/td>\r\n<td class=\"r\"><strong>$ -<\/strong><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nNext, we record the purchase of equipment for cash by debiting the balance sheet line and crediting the corresponding line on the statement of cash flows (cash used for investing):\r\n<table class=\"fin-table gridded\"><caption>RUMBLE CORP\r\nSpreadsheet for Statement of Cash Flows\r\nYear Ended December 31, 20X1<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"2\" scope=\"col\">Panel A - Balance Sheet<\/th>\r\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\r\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\r\n<th rowspan=\"2\">12\/31\/X1<\/th>\r\n<\/tr>\r\n<tr>\r\n<th>Debit<\/th>\r\n<th>Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Cash<\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Receivable<\/td>\r\n<td class=\"r\">1,750<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\">1,735<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Equipment<\/td>\r\n<td class=\"r\">24,500<\/td>\r\n<td class=\"r highlight\">580<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">25,080<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accumulated Depreciation<\/td>\r\n<td class=\"r\">(1,540)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(1,540)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Assets<\/td>\r\n<td class=\"r\">26,350<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\">26,915<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Payable<\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Wages Payable<\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Income Taxes Payable<\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Note Payable - Long Term<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">0<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Common Stock<\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Retained Earnings<\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities and Stockholders' Equity<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\">565<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"\">Panel B - Statement of Cash Flows<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Income<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Depreciation Expense - Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Decrease in Accounts Receivable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Gain on sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Accounts Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Wages Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Income Taxes Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">580<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Used for Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Receipt from Issuance of Common Stock<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from issuance of long-term debt<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Payment of Dividends<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Increase (Decrease) in Cash<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><strong>$ 15<\/strong><\/td>\r\n<td class=\"r\"><strong>$ 580<\/strong><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total debits\/credits<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">$ 595<\/td>\r\n<td class=\"r\">$ 595<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nNext, we know that we sold equipment and recorded a gain on the sale:\r\n<table class=\"fin-table gridded\"><caption>RUMBLE CORP\r\nSpreadsheet for Statement of Cash Flows\r\nYear Ended December 31, 20X1<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"2\" scope=\"col\">Panel A - Balance Sheet<\/th>\r\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\r\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\r\n<th rowspan=\"2\">12\/31\/X1<\/th>\r\n<\/tr>\r\n<tr>\r\n<th>Debit<\/th>\r\n<th>Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Cash<\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Receivable<\/td>\r\n<td class=\"r\">1,750<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\">1,735<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Equipment<\/td>\r\n<td class=\"r\">24,500<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r highlight\">160<\/td>\r\n<td class=\"r\">24,920<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accumulated Depreciation<\/td>\r\n<td class=\"r\">(1,540)<\/td>\r\n<td class=\"r highlight\">100<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(1,440)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Assets<\/td>\r\n<td class=\"r\">26,350<\/td>\r\n<td class=\"r\">680<\/td>\r\n<td class=\"r\">175<\/td>\r\n<td class=\"r\">26,855<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Payable<\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Wages Payable<\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Income Taxes Payable<\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Note Payable - Long Term<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">0<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Common Stock<\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Retained Earnings<\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities and Stockholders' Equity<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">680<\/td>\r\n<td class=\"r\">175<\/td>\r\n<td class=\"r\">505<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"\">Panel B - Statement of Cash Flows<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Income<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Depreciation Expense - Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Decrease in Accounts Receivable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Gain on sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">90<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Accounts Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Wages Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Income Taxes Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">150<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Used for Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Receipt from Issuance of Common Stock<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from issuance of long-term debt<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Payment of Dividends<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Increase (Decrease) in Cash<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><strong>$ 165<\/strong><\/td>\r\n<td class=\"r\"><strong>$ 670<\/strong><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total debits\/credits<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">$ 845<\/td>\r\n<td class=\"r\">$ 845<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nBit by bit, we are reconstructing the ending balance sheet by recording the changes to each account caused by cash transactions.\r\n\r\nAccumulated depreciation is the next line on the balance sheet as we work our way from top to bottom. We record depreciation expense as a credit to accumulated depreciation (an increase) and a debit to depreciation expense on the statement of cash flows (which will be an add-back to net income).\r\n<table class=\"fin-table gridded\"><caption>RUMBLE CORP\r\nSpreadsheet for Statement of Cash Flows\r\nYear Ended December 31, 20X1<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"2\" scope=\"col\">Panel A - Balance Sheet<\/th>\r\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\r\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\r\n<th rowspan=\"2\">12\/31\/X1<\/th>\r\n<\/tr>\r\n<tr>\r\n<th>Debit<\/th>\r\n<th>Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Cash<\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Receivable<\/td>\r\n<td class=\"r\">1,750<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\">1,735<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Equipment<\/td>\r\n<td class=\"r\">24,500<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">60<\/td>\r\n<td class=\"r\">25,020<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accumulated Depreciation<\/td>\r\n<td class=\"r\">(1,540)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">125<\/td>\r\n<td class=\"r\">(1,665)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Assets<\/td>\r\n<td class=\"r\">26,350<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">200<\/td>\r\n<td class=\"r\">26,730<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Payable<\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Wages Payable<\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Income Taxes Payable<\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Note Payable - Long Term<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">0<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Common Stock<\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Retained Earnings<\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities and Stockholders' Equity<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">200<\/td>\r\n<td class=\"r\">380<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"\">Panel B - Statement of Cash Flows<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Income<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Depreciation Expense - Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">125<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Decrease in Accounts Receivable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Gain on sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">90<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Accounts Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Wages Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Income Taxes Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">150<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Used for Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Receipt from Issuance of Common Stock<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from issuance of long-term debt<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Payment of Dividends<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Increase (Decrease) in Cash<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><strong>$ 290<\/strong><\/td>\r\n<td class=\"r\"><strong>$ 670<\/strong><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total debits\/credits<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">$ 870<\/td>\r\n<td class=\"r\">$ 870<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nThen we adjust the current liability accounts:\r\n&nbsp;\r\n<table class=\"fin-table gridded\"><caption>RUMBLE CORP\r\nSpreadsheet for Statement of Cash Flows\r\nYear Ended December 31, 20X1<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"2\" scope=\"col\">Panel A - Balance Sheet<\/th>\r\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\r\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\r\n<th rowspan=\"2\">12\/31\/X1<\/th>\r\n<\/tr>\r\n<tr>\r\n<th>Debit<\/th>\r\n<th>Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Cash<\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Receivable<\/td>\r\n<td class=\"r\">1,750<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\">1,735<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Equipment<\/td>\r\n<td class=\"r\">24,500<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">60<\/td>\r\n<td class=\"r\">25,020<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accumulated Depreciation<\/td>\r\n<td class=\"r\">(1,540)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">125<\/td>\r\n<td class=\"r\">(1,665)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Assets<\/td>\r\n<td class=\"r\">26,350<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">200<\/td>\r\n<td class=\"r\">26,730<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Payable<\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">32<\/td>\r\n<td class=\"r\">(1,039)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Wages Payable<\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">80<\/td>\r\n<td class=\"r\">(135)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Income Taxes Payable<\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">18<\/td>\r\n<td class=\"r\">(60)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Note Payable - Long Term<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">0<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">130<\/td>\r\n<td class=\"r\">(1,234)<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Common Stock<\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Retained Earnings<\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities and Stockholders' Equity<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">130<\/td>\r\n<td class=\"r\">(26,480)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">330<\/td>\r\n<td class=\"r\">250<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"\">Panel B - Statement of Cash Flows<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Income<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Depreciation Expense - Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">125<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Decrease in Accounts Receivable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Gain on sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">90<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Accounts Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">32<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Wages Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">80<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Income Taxes Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">18<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">150<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Used for Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Receipt from Issuance of Common Stock<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from issuance of long-term debt<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Payment of Dividends<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Increase (Decrease) in Cash<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><strong>$ 420<\/strong><\/td>\r\n<td class=\"r\"><strong>$ 670<\/strong><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total debits\/credits<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">$ 1,000<\/td>\r\n<td class=\"r\">$ 1,000<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nThe long-term borrowing increased cash and was a financing activity:\r\n&nbsp;\r\n<table class=\"fin-table gridded\"><caption>RUMBLE CORP\r\nSpreadsheet for Statement of Cash Flows\r\nYear Ended December 31, 20X1<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"2\" scope=\"col\">Panel A - Balance Sheet<\/th>\r\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\r\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\r\n<th rowspan=\"2\">12\/31\/X1<\/th>\r\n<\/tr>\r\n<tr>\r\n<th>Debit<\/th>\r\n<th>Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Cash<\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Receivable<\/td>\r\n<td class=\"r\">1,750<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\">1,735<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Equipment<\/td>\r\n<td class=\"r\">24,500<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">60<\/td>\r\n<td class=\"r\">25,020<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accumulated Depreciation<\/td>\r\n<td class=\"r\">(1,540)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">125<\/td>\r\n<td class=\"r\">(1,665)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Assets<\/td>\r\n<td class=\"r\">26,350<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">200<\/td>\r\n<td class=\"r\">26,730<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Payable<\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">32<\/td>\r\n<td class=\"r\">(1,039)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Wages Payable<\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">80<\/td>\r\n<td class=\"r\">(135)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Income Taxes Payable<\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">18<\/td>\r\n<td class=\"r\">(60)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Note Payable - Long Term<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">500<\/td>\r\n<td class=\"r\">(500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">630<\/td>\r\n<td class=\"r\">(1,734)<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Common Stock<\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Retained Earnings<\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities and Stockholders' Equity<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">630<\/td>\r\n<td class=\"r\">(26,980)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">830<\/td>\r\n<td class=\"r\">(250)<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"\">Panel B - Statement of Cash Flows<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Income<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Depreciation Expense - Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">125<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Decrease in Accounts Receivable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Gain on sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">90<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Accounts Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">32<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Wages Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">80<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Income Taxes Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">18<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">150<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Used for Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Receipt from Issuance of Common Stock<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from issuance of long-term debt<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">500<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Payment of Dividends<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Increase (Decrease) in Cash<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><strong>$ 920<\/strong><\/td>\r\n<td class=\"r\"><strong>$ 670<\/strong><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total debits\/credits<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">$ 1,500<\/td>\r\n<td class=\"r\">$ 1,500<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nAnd issuing stock for cash also represents cash provided by a financing activity:\r\n&nbsp;\r\n<table class=\"fin-table gridded\"><caption>RUMBLE CORP\r\nSpreadsheet for Statement of Cash Flows\r\nYear Ended December 31, 20X1<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"2\" scope=\"col\">Panel A - Balance Sheet<\/th>\r\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\r\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\r\n<th rowspan=\"2\">12\/31\/X1<\/th>\r\n<\/tr>\r\n<tr>\r\n<th>Debit<\/th>\r\n<th>Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Cash<\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Receivable<\/td>\r\n<td class=\"r\">1,750<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\">1,735<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Equipment<\/td>\r\n<td class=\"r\">24,500<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">60<\/td>\r\n<td class=\"r\">25,020<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accumulated Depreciation<\/td>\r\n<td class=\"r\">(1,540)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">125<\/td>\r\n<td class=\"r\">(1,665)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Assets<\/td>\r\n<td class=\"r\">26,350<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">200<\/td>\r\n<td class=\"r\">26,730<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Payable<\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">32<\/td>\r\n<td class=\"r\">(1,039)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Wages Payable<\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">80<\/td>\r\n<td class=\"r\">(135)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Income Taxes Payable<\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">18<\/td>\r\n<td class=\"r\">(60)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Note Payable - Long Term<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">500<\/td>\r\n<td class=\"r\">(500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">630<\/td>\r\n<td class=\"r\">(1,734)<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Common Stock<\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">1,000<\/td>\r\n<td class=\"r\">(13,500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Retained Earnings<\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities and Stockholders' Equity<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">1,630<\/td>\r\n<td class=\"r\">(27,980)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">1,830<\/td>\r\n<td class=\"r\">(1,250)<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"\">Panel B - Statement of Cash Flows<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Income<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Depreciation Expense - Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">125<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Decrease in Accounts Receivable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Gain on sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">90<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Accounts Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">32<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Wages Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">80<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Income Taxes Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">18<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">150<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Used for Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Receipt from Issuance of Common Stock<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">1,000<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from issuance of long-term debt<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">500<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Payment of Dividends<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Increase (Decrease) in Cash<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><strong>$ 1,920<\/strong><\/td>\r\n<td class=\"r\"><strong>$ 670<\/strong><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total debits\/credits<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">$ 2,500<\/td>\r\n<td class=\"r\">$ 2,500<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nWe now post net income to retained earnings:\r\n&nbsp;\r\n<table class=\"fin-table gridded\"><caption>RUMBLE CORP\r\nSpreadsheet for Statement of Cash Flows\r\nYear Ended December 31, 20X1<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"2\" scope=\"col\">Panel A - Balance Sheet<\/th>\r\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\r\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\r\n<th rowspan=\"2\">12\/31\/X1<\/th>\r\n<\/tr>\r\n<tr>\r\n<th>Debit<\/th>\r\n<th>Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Cash<\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Receivable<\/td>\r\n<td class=\"r\">1,750<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\">1,735<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Equipment<\/td>\r\n<td class=\"r\">24,500<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">60<\/td>\r\n<td class=\"r\">25,020<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accumulated Depreciation<\/td>\r\n<td class=\"r\">(1,540)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">125<\/td>\r\n<td class=\"r\">(1,665)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Assets<\/td>\r\n<td class=\"r\">26,350<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">200<\/td>\r\n<td class=\"r\">26,730<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Payable<\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">32<\/td>\r\n<td class=\"r\">(1,039)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Wages Payable<\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">80<\/td>\r\n<td class=\"r\">(135)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Income Taxes Payable<\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">18<\/td>\r\n<td class=\"r\">(60)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Note Payable - Long Term<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">500<\/td>\r\n<td class=\"r\">(500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">630<\/td>\r\n<td class=\"r\">(1,734)<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Common Stock<\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,000<\/td>\r\n<td class=\"r\">(13,500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Retained Earnings<\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">2,610<\/td>\r\n<td class=\"r\">(15,356)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities and Stockholders' Equity<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">4,240<\/td>\r\n<td class=\"r\">(30,590)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">4,440<\/td>\r\n<td class=\"r\">(3,860)<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"\">Panel B - Statement of Cash Flows<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Income<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">2,610<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Depreciation Expense - Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">125<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Decrease in Accounts Receivable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Gain on sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">90<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Accounts Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">32<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Wages Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">80<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Income Taxes Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">18<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">150<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Used for Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Receipt from Issuance of Common Stock<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,000<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from issuance of long-term debt<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">500<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Payment of Dividends<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Increase (Decrease) in Cash<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><strong>$ 4,530<\/strong><\/td>\r\n<td class=\"r\"><strong>$ 670<\/strong><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total debits\/credits<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">$ 5,110<\/td>\r\n<td class=\"r\">$ 5,110<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nDividends reduce retained earnings:\r\n&nbsp;\r\n<table class=\"fin-table gridded\"><caption>RUMBLE CORP\r\nSpreadsheet for Statement of Cash Flows\r\nYear Ended December 31, 20X1<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"2\" scope=\"col\">Panel A - Balance Sheet<\/th>\r\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\r\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\r\n<th rowspan=\"2\">12\/31\/X1<\/th>\r\n<\/tr>\r\n<tr>\r\n<th>Debit<\/th>\r\n<th>Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Cash<\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Receivable<\/td>\r\n<td class=\"r\">1,750<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\">1,735<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Equipment<\/td>\r\n<td class=\"r\">24,500<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">60<\/td>\r\n<td class=\"r\">25,020<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accumulated Depreciation<\/td>\r\n<td class=\"r\">(1,540)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">125<\/td>\r\n<td class=\"r\">(1,665)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Assets<\/td>\r\n<td class=\"r\">26,350<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">200<\/td>\r\n<td class=\"r\">26,730<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Payable<\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">32<\/td>\r\n<td class=\"r\">(1,039)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Wages Payable<\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">80<\/td>\r\n<td class=\"r\">(135)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Income Taxes Payable<\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">18<\/td>\r\n<td class=\"r\">(60)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Note Payable - Long Term<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">500<\/td>\r\n<td class=\"r\">(500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">630<\/td>\r\n<td class=\"r\">(1,734)<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Common Stock<\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,000<\/td>\r\n<td class=\"r\">(13,500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Retained Earnings<\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<td class=\"r highlight\">460<\/td>\r\n<td class=\"r\">2,610<\/td>\r\n<td class=\"r\">(14,896)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities and Stockholders' Equity<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<td class=\"r\">460<\/td>\r\n<td class=\"r\">4,240<\/td>\r\n<td class=\"r\">(30,130)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">1,040<\/td>\r\n<td class=\"r\">4,440<\/td>\r\n<td class=\"r\">(3,400)<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"\">Panel B - Statement of Cash Flows<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Income<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">2,610<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Depreciation Expense - Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">125<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Decrease in Accounts Receivable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Gain on sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">90<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Accounts Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">32<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Wages Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">80<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Income Taxes Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">18<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">150<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Used for Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Receipt from Issuance of Common Stock<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,000<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from issuance of long-term debt<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">500<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Payment of Dividends<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">460<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Increase (Decrease) in Cash<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><strong>$ 4,530<\/strong><\/td>\r\n<td class=\"r\"><strong>$ 1,130<\/strong><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total debits\/credits<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">$ 5,570<\/td>\r\n<td class=\"r\">$ 5,570<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nAnd the final step is to post the change in cash:\r\n&nbsp;\r\n<table class=\"fin-table gridded\"><caption>RUMBLE CORP\r\nSpreadsheet for Statement of Cash Flows\r\nYear Ended December 31, 20X1<\/caption>\r\n<thead>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"2\" scope=\"col\">Panel A - Balance Sheet<\/th>\r\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\r\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\r\n<th rowspan=\"2\">12\/31\/X1<\/th>\r\n<\/tr>\r\n<tr>\r\n<th>Debit<\/th>\r\n<th>Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Cash<\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<td class=\"r highlight\">3,400<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">5,040<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Receivable<\/td>\r\n<td class=\"r\">1,750<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\">1,735<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Equipment<\/td>\r\n<td class=\"r\">24,500<\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\">60<\/td>\r\n<td class=\"r\">25,020<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accumulated Depreciation<\/td>\r\n<td class=\"r\">(1,540)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">125<\/td>\r\n<td class=\"r\">(1,665)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Assets<\/td>\r\n<td class=\"r\">26,350<\/td>\r\n<td class=\"r\">3,980<\/td>\r\n<td class=\"r\">200<\/td>\r\n<td class=\"r\">30,130<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Payable<\/td>\r\n<td class=\"r\">(1,007)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">32<\/td>\r\n<td class=\"r\">(1,039)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Wages Payable<\/td>\r\n<td class=\"r\">(55)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">80<\/td>\r\n<td class=\"r\">(135)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Income Taxes Payable<\/td>\r\n<td class=\"r\">(42)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">18<\/td>\r\n<td class=\"r\">(60)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Note Payable - Long Term<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">500<\/td>\r\n<td class=\"r\">(500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities<\/td>\r\n<td class=\"r\">(1,104)<\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">630<\/td>\r\n<td class=\"r\">(1,734)<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Common Stock<\/td>\r\n<td class=\"r\">(12,500)<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,000<\/td>\r\n<td class=\"r\">(13,500)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Retained Earnings<\/td>\r\n<td class=\"r\">(12,746)<\/td>\r\n<td class=\"r\">460<\/td>\r\n<td class=\"r\">2,610<\/td>\r\n<td class=\"r\">(14,896)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities and Stockholders' Equity<\/td>\r\n<td class=\"r\">(26,350)<\/td>\r\n<td class=\"r\">460<\/td>\r\n<td class=\"r\">4,240<\/td>\r\n<td class=\"r\">(30,130)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td class=\"r\">0<\/td>\r\n<td class=\"r\">4,440<\/td>\r\n<td class=\"r\">4,440<\/td>\r\n<td class=\"r\">0<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"\">Panel B - Statement of Cash Flows<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Income<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">2,610<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Depreciation Expense - Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">125<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Decrease in Accounts Receivable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Gain on sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">90<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Accounts Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">32<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Wages Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">80<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Income Taxes Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">18<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Operating Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">580<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from sale of equipment<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">150<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Used for Investing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Flows from Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Receipt from Issuance of Common Stock<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,000<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from issuance of long-term debt<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">500<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash Payment of Dividends<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">460<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Cash Provided by Financing Activities<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net Increase (Decrease) in Cash<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r highlight\">3,400<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><strong>$ 4,530<\/strong><\/td>\r\n<td class=\"r\"><strong>$ 4,530<\/strong><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Total debits\/credits<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">$ 8,970<\/td>\r\n<td class=\"r\">$ 8,970<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nAnd now the numbers are all in place, everything is accounted for, and all we have to do is place the numbers into the proper format along with some supplemental information we\u2019ll have to get from the general ledger:\r\n\r\n<span class=\"u-sr-only\">Subcategory, <\/span><strong>Cash flows from financing activities<\/strong>\r\n<table class=\"fin-table acctstatement\"><caption>Rumble Corp.\r\nStatement of Cash Flows\r\nfor the year ended 12\/31\/x1<\/caption>\r\n<thead>\r\n<tr class=\"u-sr-only\">\r\n<th scope=\"col\">Description<\/th>\r\n<th scope=\"col\">Amount<\/th>\r\n<th scope=\"col\">Total<\/th>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<th colspan=\"2\" scope=\"col\"><i>In millions<\/i><\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td colspan=\"3\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Cash flows from operating activities<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net income<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">$ 2,610<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Adjustments to reconcile net income to net cash provided by operating activities:<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Depreciation and amortization<\/td>\r\n<td class=\"r\">125<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Decrease in Accounts Receivable<\/td>\r\n<td class=\"r\">15<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Gain on sale of equipment<\/td>\r\n<td class=\"r\">(90)<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in Accounts Payable<\/td>\r\n<td class=\"r\">32<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in income taxes payable<\/td>\r\n<td class=\"r\">80<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increase in other liabilities<\/td>\r\n<td class=\"r\">18<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total adjustments<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">180<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net cash from operating activities<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span><\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>\r\n$2,790<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"3\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td colspan=\"3\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Cash flows from investing activities<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Purchase of property, plant, and equipment<\/td>\r\n<td class=\"r\">(580)<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from sale of equipment<\/td>\r\n<td class=\"r\">150<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net cash used in investing activities<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span><\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>\r\n(430)<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"3\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from issuance of common stock<\/td>\r\n<td class=\"r\">1,000<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Proceeds from issuance of long-term debt<\/td>\r\n<td class=\"r\">500<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Dividends paid<\/td>\r\n<td class=\"r\">(460)<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net cash used in financing activities<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span><\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>\r\n1,040<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"3\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Net increase in cash and cash equivalents<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">3,400<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Cash and cash equivalents at beginning of period<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,640<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Cash and cash equivalents at end of period<\/th>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>\r\n$5,040\r\n<span class=\"u-sr-only\">Double Line<\/span><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"3\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Supplemental information:<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash paid for interest<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">$ 310<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash paid for income taxes<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">$ 1,700<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nCongratulations! You\u2019ve now worked all the way through the worksheet and created the Statement of Cash Flows.\r\n<div class=\"textbox tryit\">\r\n<h3>practice question<\/h3>\r\nhttps:\/\/assessments.lumenlearning.com\/assessments\/23846\r\n\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li style=\"font-weight: 400;\">Demonstrate the use of a worksheet to create the Statement of Cash Flows<\/li>\n<\/ul>\n<\/div>\n<p>In order to ensure accuracy and make the process as efficient as possible, accountants have developed a worksheet process to create the statement of cash flows. We\u2019ll demonstrate that process here using the indirect method because that is its most common use and the indirect method is the most common presentation.<\/p>\n<p>First, we look at the beginning and ending balance sheets:<\/p>\n<table class=\"fin-table gridded\">\n<caption>RUMBLE CORP<br \/>\nSpreadsheet for Statement of Cash Flows<br \/>\nYear Ended December 31, 20X1<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th rowspan=\"2\" scope=\"col\">Panel A &#8211; Balance Sheet<\/th>\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\n<th rowspan=\"2\">12\/31\/X1<\/th>\n<\/tr>\n<tr>\n<th>Debit<\/th>\n<th>Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cash<\/td>\n<td class=\"r\">1,640<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">5,040<\/td>\n<\/tr>\n<tr>\n<td>Accounts Receivable<\/td>\n<td class=\"r\">1,750<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,735<\/td>\n<\/tr>\n<tr>\n<td>Equipment<\/td>\n<td class=\"r\">24,500<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">24,920<\/td>\n<\/tr>\n<tr>\n<td>Accumulated Depreciation<\/td>\n<td class=\"r\">(1,540)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(1,565)<\/td>\n<\/tr>\n<tr>\n<td>Total Assets<\/td>\n<td class=\"r\">26,350<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">30,130<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Accounts Payable<\/td>\n<td class=\"r\">(1,007)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(1,039)<\/td>\n<\/tr>\n<tr>\n<td>Wages Payable<\/td>\n<td class=\"r\">(55)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(135)<\/td>\n<\/tr>\n<tr>\n<td>Income Taxes Payable<\/td>\n<td class=\"r\">(42)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(60)<\/td>\n<\/tr>\n<tr>\n<td>Note Payable &#8211; Long Term<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(500)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities<\/td>\n<td class=\"r\">(1,104)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(1,734)<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Common Stock<\/td>\n<td class=\"r\">(12,500)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(13,500)<\/td>\n<\/tr>\n<tr>\n<td>Retained Earnings<\/td>\n<td class=\"r\">(12,746)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(14,896)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities and Stockholders&#8217; Equity<\/td>\n<td class=\"r\">(26,350)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(30,130)<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>We\u2019re showing credit balances on this spreadsheet as negative numbers (in parenthesis), but different accountants may do this differently. Also notice the December 31, 20X0 balance is presented as the January 1, 20X1 balance. Again, that is personal preference.<\/p>\n<p>We\u2019ll add a template to the bottom of this balance sheet spreadsheet that we will use to capture the changes in cash:<\/p>\n<table class=\"fin-table gridded\">\n<tbody>\n<tr>\n<th style=\"width: 606.5px;\" colspan=\"4\">Panel B \u2013 Statement of Cash Flows<\/th>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Cash Flows from Operating Activities:<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Net Income<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Depreciation Expense &#8211; Plant Assets<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Decrease in accounts receivable<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Gain on sale of equipment<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Increase in Accounts Payable<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Increase in Wages Payable<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Increase in Income Taxes Payable<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Net Cash Provided by Operating Activities<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Cash Flows from Investing Activities:<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Cash Paid for Acquisition of Plant Assets<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Proceeds from sale of equipment<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Net Cash Used for Investing Activities<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Cash Flows from Financing Activities:<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Cash Receipt from Issuance of Common Stock<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Proceeds from issuance of long-term debt<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Cash Payment of Dividends<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Net Cash Provided by Financing Activities<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Net Increase (Decrease) in Cash:<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<td class=\"highlight\" style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\">Total<\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 496.5px;\"><\/td>\n<td style=\"width: 11.5px;\"><\/td>\n<td style=\"width: 50.5px;\"><\/td>\n<td style=\"width: 50.5px;\">&#8211;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>And now we fill in the worksheet one line at a time, starting with accounts receivable.<\/p>\n<p>Every debit will have to have a credit. Accounts receivable decreased by $15, so we credit that account on the spreadsheet and debit the corresponding line on the statement of cash flows.<\/p>\n<table class=\"fin-table gridded\">\n<caption>RUMBLE CORP<br \/>\nSpreadsheet for Statement of Cash Flows<br \/>\nYear Ended December 31, 20X1<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th rowspan=\"2\" scope=\"col\">Panel A &#8211; Balance Sheet<\/th>\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\n<th rowspan=\"2\">12\/31\/X1<\/th>\n<\/tr>\n<tr>\n<th>Debit<\/th>\n<th>Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cash<\/td>\n<td class=\"r\">1,640<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,640<\/td>\n<\/tr>\n<tr>\n<td>Accounts Receivable<\/td>\n<td class=\"r\">1,750<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">15<\/td>\n<td class=\"r\">1,735<\/td>\n<\/tr>\n<tr>\n<td>Equipment<\/td>\n<td class=\"r\">24,500<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">24,500<\/td>\n<\/tr>\n<tr>\n<td>Accumulated Depreciation<\/td>\n<td class=\"r\">(1,540)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(1,540)<\/td>\n<\/tr>\n<tr>\n<td>Total Assets<\/td>\n<td class=\"r\">26,350<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\">26,335<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Accounts Payable<\/td>\n<td class=\"r\">(1,007)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(1,007)<\/td>\n<\/tr>\n<tr>\n<td>Wages Payable<\/td>\n<td class=\"r\">(55)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(55)<\/td>\n<\/tr>\n<tr>\n<td>Income Taxes Payable<\/td>\n<td class=\"r\">(42)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(42)<\/td>\n<\/tr>\n<tr>\n<td>Note Payable &#8211; Long Term<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">0<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities<\/td>\n<td class=\"r\">(1,104)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">(1,104)<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Common Stock<\/td>\n<td class=\"r\">(12,500)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(12,500)<\/td>\n<\/tr>\n<tr>\n<td>Retained Earnings<\/td>\n<td class=\"r\">(12,746)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(12,746)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities and Stockholders&#8217; Equity<\/td>\n<td class=\"r\">(26,350)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">(26,350)<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\">(15)<\/td>\n<\/tr>\n<tr>\n<th scope=\"\">Panel B &#8211; Statement of Cash Flows<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Income<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Depreciation Expense &#8211; Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Decrease in Accounts Receivable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">15<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Gain on sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Accounts Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Wages Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Income Taxes Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Used for Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Receipt from Issuance of Common Stock<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from issuance of long-term debt<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Payment of Dividends<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Increase (Decrease) in Cash<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><strong>$ 15<\/strong><\/td>\n<td class=\"r\"><strong>$ &#8211;<\/strong><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Next, we record the purchase of equipment for cash by debiting the balance sheet line and crediting the corresponding line on the statement of cash flows (cash used for investing):<\/p>\n<table class=\"fin-table gridded\">\n<caption>RUMBLE CORP<br \/>\nSpreadsheet for Statement of Cash Flows<br \/>\nYear Ended December 31, 20X1<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th rowspan=\"2\" scope=\"col\">Panel A &#8211; Balance Sheet<\/th>\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\n<th rowspan=\"2\">12\/31\/X1<\/th>\n<\/tr>\n<tr>\n<th>Debit<\/th>\n<th>Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cash<\/td>\n<td class=\"r\">1,640<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,640<\/td>\n<\/tr>\n<tr>\n<td>Accounts Receivable<\/td>\n<td class=\"r\">1,750<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\">1,735<\/td>\n<\/tr>\n<tr>\n<td>Equipment<\/td>\n<td class=\"r\">24,500<\/td>\n<td class=\"r highlight\">580<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">25,080<\/td>\n<\/tr>\n<tr>\n<td>Accumulated Depreciation<\/td>\n<td class=\"r\">(1,540)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(1,540)<\/td>\n<\/tr>\n<tr>\n<td>Total Assets<\/td>\n<td class=\"r\">26,350<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\">26,915<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Accounts Payable<\/td>\n<td class=\"r\">(1,007)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(1,007)<\/td>\n<\/tr>\n<tr>\n<td>Wages Payable<\/td>\n<td class=\"r\">(55)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(55)<\/td>\n<\/tr>\n<tr>\n<td>Income Taxes Payable<\/td>\n<td class=\"r\">(42)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(42)<\/td>\n<\/tr>\n<tr>\n<td>Note Payable &#8211; Long Term<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">0<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities<\/td>\n<td class=\"r\">(1,104)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">(1,104)<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Common Stock<\/td>\n<td class=\"r\">(12,500)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(12,500)<\/td>\n<\/tr>\n<tr>\n<td>Retained Earnings<\/td>\n<td class=\"r\">(12,746)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(12,746)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities and Stockholders&#8217; Equity<\/td>\n<td class=\"r\">(26,350)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">(26,350)<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\">565<\/td>\n<\/tr>\n<tr>\n<th scope=\"\">Panel B &#8211; Statement of Cash Flows<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Income<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Depreciation Expense &#8211; Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Decrease in Accounts Receivable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Gain on sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Accounts Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Wages Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Income Taxes Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">580<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Used for Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Receipt from Issuance of Common Stock<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from issuance of long-term debt<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Payment of Dividends<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Increase (Decrease) in Cash<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><strong>$ 15<\/strong><\/td>\n<td class=\"r\"><strong>$ 580<\/strong><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total debits\/credits<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\">$ 595<\/td>\n<td class=\"r\">$ 595<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Next, we know that we sold equipment and recorded a gain on the sale:<\/p>\n<table class=\"fin-table gridded\">\n<caption>RUMBLE CORP<br \/>\nSpreadsheet for Statement of Cash Flows<br \/>\nYear Ended December 31, 20X1<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th rowspan=\"2\" scope=\"col\">Panel A &#8211; Balance Sheet<\/th>\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\n<th rowspan=\"2\">12\/31\/X1<\/th>\n<\/tr>\n<tr>\n<th>Debit<\/th>\n<th>Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cash<\/td>\n<td class=\"r\">1,640<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,640<\/td>\n<\/tr>\n<tr>\n<td>Accounts Receivable<\/td>\n<td class=\"r\">1,750<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\">1,735<\/td>\n<\/tr>\n<tr>\n<td>Equipment<\/td>\n<td class=\"r\">24,500<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r highlight\">160<\/td>\n<td class=\"r\">24,920<\/td>\n<\/tr>\n<tr>\n<td>Accumulated Depreciation<\/td>\n<td class=\"r\">(1,540)<\/td>\n<td class=\"r highlight\">100<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(1,440)<\/td>\n<\/tr>\n<tr>\n<td>Total Assets<\/td>\n<td class=\"r\">26,350<\/td>\n<td class=\"r\">680<\/td>\n<td class=\"r\">175<\/td>\n<td class=\"r\">26,855<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Accounts Payable<\/td>\n<td class=\"r\">(1,007)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(1,007)<\/td>\n<\/tr>\n<tr>\n<td>Wages Payable<\/td>\n<td class=\"r\">(55)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(55)<\/td>\n<\/tr>\n<tr>\n<td>Income Taxes Payable<\/td>\n<td class=\"r\">(42)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(42)<\/td>\n<\/tr>\n<tr>\n<td>Note Payable &#8211; Long Term<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">0<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities<\/td>\n<td class=\"r\">(1,104)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">(1,104)<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Common Stock<\/td>\n<td class=\"r\">(12,500)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(12,500)<\/td>\n<\/tr>\n<tr>\n<td>Retained Earnings<\/td>\n<td class=\"r\">(12,746)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(12,746)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities and Stockholders&#8217; Equity<\/td>\n<td class=\"r\">(26,350)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">(26,350)<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">680<\/td>\n<td class=\"r\">175<\/td>\n<td class=\"r\">505<\/td>\n<\/tr>\n<tr>\n<th scope=\"\">Panel B &#8211; Statement of Cash Flows<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Income<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Depreciation Expense &#8211; Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Decrease in Accounts Receivable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Gain on sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">90<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Accounts Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Wages Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Income Taxes Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">150<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Used for Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Receipt from Issuance of Common Stock<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from issuance of long-term debt<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Payment of Dividends<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Increase (Decrease) in Cash<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><strong>$ 165<\/strong><\/td>\n<td class=\"r\"><strong>$ 670<\/strong><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total debits\/credits<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\">$ 845<\/td>\n<td class=\"r\">$ 845<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Bit by bit, we are reconstructing the ending balance sheet by recording the changes to each account caused by cash transactions.<\/p>\n<p>Accumulated depreciation is the next line on the balance sheet as we work our way from top to bottom. We record depreciation expense as a credit to accumulated depreciation (an increase) and a debit to depreciation expense on the statement of cash flows (which will be an add-back to net income).<\/p>\n<table class=\"fin-table gridded\">\n<caption>RUMBLE CORP<br \/>\nSpreadsheet for Statement of Cash Flows<br \/>\nYear Ended December 31, 20X1<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th rowspan=\"2\" scope=\"col\">Panel A &#8211; Balance Sheet<\/th>\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\n<th rowspan=\"2\">12\/31\/X1<\/th>\n<\/tr>\n<tr>\n<th>Debit<\/th>\n<th>Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cash<\/td>\n<td class=\"r\">1,640<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,640<\/td>\n<\/tr>\n<tr>\n<td>Accounts Receivable<\/td>\n<td class=\"r\">1,750<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\">1,735<\/td>\n<\/tr>\n<tr>\n<td>Equipment<\/td>\n<td class=\"r\">24,500<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">60<\/td>\n<td class=\"r\">25,020<\/td>\n<\/tr>\n<tr>\n<td>Accumulated Depreciation<\/td>\n<td class=\"r\">(1,540)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">125<\/td>\n<td class=\"r\">(1,665)<\/td>\n<\/tr>\n<tr>\n<td>Total Assets<\/td>\n<td class=\"r\">26,350<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">200<\/td>\n<td class=\"r\">26,730<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Accounts Payable<\/td>\n<td class=\"r\">(1,007)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(1,007)<\/td>\n<\/tr>\n<tr>\n<td>Wages Payable<\/td>\n<td class=\"r\">(55)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(55)<\/td>\n<\/tr>\n<tr>\n<td>Income Taxes Payable<\/td>\n<td class=\"r\">(42)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(42)<\/td>\n<\/tr>\n<tr>\n<td>Note Payable &#8211; Long Term<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">0<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities<\/td>\n<td class=\"r\">(1,104)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">(1,104)<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Common Stock<\/td>\n<td class=\"r\">(12,500)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(12,500)<\/td>\n<\/tr>\n<tr>\n<td>Retained Earnings<\/td>\n<td class=\"r\">(12,746)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(12,746)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities and Stockholders&#8217; Equity<\/td>\n<td class=\"r\">(26,350)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">(26,350)<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">200<\/td>\n<td class=\"r\">380<\/td>\n<\/tr>\n<tr>\n<th scope=\"\">Panel B &#8211; Statement of Cash Flows<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Income<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Depreciation Expense &#8211; Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">125<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Decrease in Accounts Receivable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Gain on sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">90<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Accounts Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Wages Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Income Taxes Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">150<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Used for Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Receipt from Issuance of Common Stock<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from issuance of long-term debt<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Payment of Dividends<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Increase (Decrease) in Cash<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><strong>$ 290<\/strong><\/td>\n<td class=\"r\"><strong>$ 670<\/strong><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total debits\/credits<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\">$ 870<\/td>\n<td class=\"r\">$ 870<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Then we adjust the current liability accounts:<br \/>\n&nbsp;<\/p>\n<table class=\"fin-table gridded\">\n<caption>RUMBLE CORP<br \/>\nSpreadsheet for Statement of Cash Flows<br \/>\nYear Ended December 31, 20X1<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th rowspan=\"2\" scope=\"col\">Panel A &#8211; Balance Sheet<\/th>\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\n<th rowspan=\"2\">12\/31\/X1<\/th>\n<\/tr>\n<tr>\n<th>Debit<\/th>\n<th>Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cash<\/td>\n<td class=\"r\">1,640<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,640<\/td>\n<\/tr>\n<tr>\n<td>Accounts Receivable<\/td>\n<td class=\"r\">1,750<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\">1,735<\/td>\n<\/tr>\n<tr>\n<td>Equipment<\/td>\n<td class=\"r\">24,500<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">60<\/td>\n<td class=\"r\">25,020<\/td>\n<\/tr>\n<tr>\n<td>Accumulated Depreciation<\/td>\n<td class=\"r\">(1,540)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">125<\/td>\n<td class=\"r\">(1,665)<\/td>\n<\/tr>\n<tr>\n<td>Total Assets<\/td>\n<td class=\"r\">26,350<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">200<\/td>\n<td class=\"r\">26,730<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Accounts Payable<\/td>\n<td class=\"r\">(1,007)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">32<\/td>\n<td class=\"r\">(1,039)<\/td>\n<\/tr>\n<tr>\n<td>Wages Payable<\/td>\n<td class=\"r\">(55)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">80<\/td>\n<td class=\"r\">(135)<\/td>\n<\/tr>\n<tr>\n<td>Income Taxes Payable<\/td>\n<td class=\"r\">(42)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">18<\/td>\n<td class=\"r\">(60)<\/td>\n<\/tr>\n<tr>\n<td>Note Payable &#8211; Long Term<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">0<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities<\/td>\n<td class=\"r\">(1,104)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">130<\/td>\n<td class=\"r\">(1,234)<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Common Stock<\/td>\n<td class=\"r\">(12,500)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(12,500)<\/td>\n<\/tr>\n<tr>\n<td>Retained Earnings<\/td>\n<td class=\"r\">(12,746)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(12,746)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities and Stockholders&#8217; Equity<\/td>\n<td class=\"r\">(26,350)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">130<\/td>\n<td class=\"r\">(26,480)<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">330<\/td>\n<td class=\"r\">250<\/td>\n<\/tr>\n<tr>\n<th scope=\"\">Panel B &#8211; Statement of Cash Flows<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Income<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Depreciation Expense &#8211; Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">125<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Decrease in Accounts Receivable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Gain on sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">90<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Accounts Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">32<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Wages Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">80<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Income Taxes Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">18<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">150<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Used for Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Receipt from Issuance of Common Stock<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from issuance of long-term debt<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Payment of Dividends<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Increase (Decrease) in Cash<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><strong>$ 420<\/strong><\/td>\n<td class=\"r\"><strong>$ 670<\/strong><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total debits\/credits<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\">$ 1,000<\/td>\n<td class=\"r\">$ 1,000<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The long-term borrowing increased cash and was a financing activity:<br \/>\n&nbsp;<\/p>\n<table class=\"fin-table gridded\">\n<caption>RUMBLE CORP<br \/>\nSpreadsheet for Statement of Cash Flows<br \/>\nYear Ended December 31, 20X1<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th rowspan=\"2\" scope=\"col\">Panel A &#8211; Balance Sheet<\/th>\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\n<th rowspan=\"2\">12\/31\/X1<\/th>\n<\/tr>\n<tr>\n<th>Debit<\/th>\n<th>Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cash<\/td>\n<td class=\"r\">1,640<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,640<\/td>\n<\/tr>\n<tr>\n<td>Accounts Receivable<\/td>\n<td class=\"r\">1,750<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\">1,735<\/td>\n<\/tr>\n<tr>\n<td>Equipment<\/td>\n<td class=\"r\">24,500<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">60<\/td>\n<td class=\"r\">25,020<\/td>\n<\/tr>\n<tr>\n<td>Accumulated Depreciation<\/td>\n<td class=\"r\">(1,540)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">125<\/td>\n<td class=\"r\">(1,665)<\/td>\n<\/tr>\n<tr>\n<td>Total Assets<\/td>\n<td class=\"r\">26,350<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">200<\/td>\n<td class=\"r\">26,730<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Accounts Payable<\/td>\n<td class=\"r\">(1,007)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">32<\/td>\n<td class=\"r\">(1,039)<\/td>\n<\/tr>\n<tr>\n<td>Wages Payable<\/td>\n<td class=\"r\">(55)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">80<\/td>\n<td class=\"r\">(135)<\/td>\n<\/tr>\n<tr>\n<td>Income Taxes Payable<\/td>\n<td class=\"r\">(42)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">18<\/td>\n<td class=\"r\">(60)<\/td>\n<\/tr>\n<tr>\n<td>Note Payable &#8211; Long Term<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">500<\/td>\n<td class=\"r\">(500)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities<\/td>\n<td class=\"r\">(1,104)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">630<\/td>\n<td class=\"r\">(1,734)<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Common Stock<\/td>\n<td class=\"r\">(12,500)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(12,500)<\/td>\n<\/tr>\n<tr>\n<td>Retained Earnings<\/td>\n<td class=\"r\">(12,746)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(12,746)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities and Stockholders&#8217; Equity<\/td>\n<td class=\"r\">(26,350)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">630<\/td>\n<td class=\"r\">(26,980)<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">830<\/td>\n<td class=\"r\">(250)<\/td>\n<\/tr>\n<tr>\n<th scope=\"\">Panel B &#8211; Statement of Cash Flows<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Income<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Depreciation Expense &#8211; Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">125<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Decrease in Accounts Receivable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Gain on sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">90<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Accounts Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">32<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Wages Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">80<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Income Taxes Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">18<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">150<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Used for Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Receipt from Issuance of Common Stock<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from issuance of long-term debt<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">500<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Payment of Dividends<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Increase (Decrease) in Cash<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><strong>$ 920<\/strong><\/td>\n<td class=\"r\"><strong>$ 670<\/strong><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total debits\/credits<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\">$ 1,500<\/td>\n<td class=\"r\">$ 1,500<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>And issuing stock for cash also represents cash provided by a financing activity:<br \/>\n&nbsp;<\/p>\n<table class=\"fin-table gridded\">\n<caption>RUMBLE CORP<br \/>\nSpreadsheet for Statement of Cash Flows<br \/>\nYear Ended December 31, 20X1<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th rowspan=\"2\" scope=\"col\">Panel A &#8211; Balance Sheet<\/th>\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\n<th rowspan=\"2\">12\/31\/X1<\/th>\n<\/tr>\n<tr>\n<th>Debit<\/th>\n<th>Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cash<\/td>\n<td class=\"r\">1,640<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,640<\/td>\n<\/tr>\n<tr>\n<td>Accounts Receivable<\/td>\n<td class=\"r\">1,750<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\">1,735<\/td>\n<\/tr>\n<tr>\n<td>Equipment<\/td>\n<td class=\"r\">24,500<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">60<\/td>\n<td class=\"r\">25,020<\/td>\n<\/tr>\n<tr>\n<td>Accumulated Depreciation<\/td>\n<td class=\"r\">(1,540)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">125<\/td>\n<td class=\"r\">(1,665)<\/td>\n<\/tr>\n<tr>\n<td>Total Assets<\/td>\n<td class=\"r\">26,350<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">200<\/td>\n<td class=\"r\">26,730<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Accounts Payable<\/td>\n<td class=\"r\">(1,007)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">32<\/td>\n<td class=\"r\">(1,039)<\/td>\n<\/tr>\n<tr>\n<td>Wages Payable<\/td>\n<td class=\"r\">(55)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">80<\/td>\n<td class=\"r\">(135)<\/td>\n<\/tr>\n<tr>\n<td>Income Taxes Payable<\/td>\n<td class=\"r\">(42)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">18<\/td>\n<td class=\"r\">(60)<\/td>\n<\/tr>\n<tr>\n<td>Note Payable &#8211; Long Term<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">500<\/td>\n<td class=\"r\">(500)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities<\/td>\n<td class=\"r\">(1,104)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">630<\/td>\n<td class=\"r\">(1,734)<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Common Stock<\/td>\n<td class=\"r\">(12,500)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">1,000<\/td>\n<td class=\"r\">(13,500)<\/td>\n<\/tr>\n<tr>\n<td>Retained Earnings<\/td>\n<td class=\"r\">(12,746)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">(12,746)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities and Stockholders&#8217; Equity<\/td>\n<td class=\"r\">(26,350)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">1,630<\/td>\n<td class=\"r\">(27,980)<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">1,830<\/td>\n<td class=\"r\">(1,250)<\/td>\n<\/tr>\n<tr>\n<th scope=\"\">Panel B &#8211; Statement of Cash Flows<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Income<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Depreciation Expense &#8211; Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">125<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Decrease in Accounts Receivable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Gain on sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">90<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Accounts Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">32<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Wages Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">80<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Income Taxes Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">18<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">150<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Used for Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Receipt from Issuance of Common Stock<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">1,000<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from issuance of long-term debt<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">500<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Payment of Dividends<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Increase (Decrease) in Cash<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><strong>$ 1,920<\/strong><\/td>\n<td class=\"r\"><strong>$ 670<\/strong><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total debits\/credits<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\">$ 2,500<\/td>\n<td class=\"r\">$ 2,500<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>We now post net income to retained earnings:<br \/>\n&nbsp;<\/p>\n<table class=\"fin-table gridded\">\n<caption>RUMBLE CORP<br \/>\nSpreadsheet for Statement of Cash Flows<br \/>\nYear Ended December 31, 20X1<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th rowspan=\"2\" scope=\"col\">Panel A &#8211; Balance Sheet<\/th>\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\n<th rowspan=\"2\">12\/31\/X1<\/th>\n<\/tr>\n<tr>\n<th>Debit<\/th>\n<th>Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cash<\/td>\n<td class=\"r\">1,640<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,640<\/td>\n<\/tr>\n<tr>\n<td>Accounts Receivable<\/td>\n<td class=\"r\">1,750<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\">1,735<\/td>\n<\/tr>\n<tr>\n<td>Equipment<\/td>\n<td class=\"r\">24,500<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">60<\/td>\n<td class=\"r\">25,020<\/td>\n<\/tr>\n<tr>\n<td>Accumulated Depreciation<\/td>\n<td class=\"r\">(1,540)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">125<\/td>\n<td class=\"r\">(1,665)<\/td>\n<\/tr>\n<tr>\n<td>Total Assets<\/td>\n<td class=\"r\">26,350<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">200<\/td>\n<td class=\"r\">26,730<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Accounts Payable<\/td>\n<td class=\"r\">(1,007)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">32<\/td>\n<td class=\"r\">(1,039)<\/td>\n<\/tr>\n<tr>\n<td>Wages Payable<\/td>\n<td class=\"r\">(55)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">80<\/td>\n<td class=\"r\">(135)<\/td>\n<\/tr>\n<tr>\n<td>Income Taxes Payable<\/td>\n<td class=\"r\">(42)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">18<\/td>\n<td class=\"r\">(60)<\/td>\n<\/tr>\n<tr>\n<td>Note Payable &#8211; Long Term<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">500<\/td>\n<td class=\"r\">(500)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities<\/td>\n<td class=\"r\">(1,104)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">630<\/td>\n<td class=\"r\">(1,734)<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Common Stock<\/td>\n<td class=\"r\">(12,500)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,000<\/td>\n<td class=\"r\">(13,500)<\/td>\n<\/tr>\n<tr>\n<td>Retained Earnings<\/td>\n<td class=\"r\">(12,746)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">2,610<\/td>\n<td class=\"r\">(15,356)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities and Stockholders&#8217; Equity<\/td>\n<td class=\"r\">(26,350)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">4,240<\/td>\n<td class=\"r\">(30,590)<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">4,440<\/td>\n<td class=\"r\">(3,860)<\/td>\n<\/tr>\n<tr>\n<th scope=\"\">Panel B &#8211; Statement of Cash Flows<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Income<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">2,610<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Depreciation Expense &#8211; Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">125<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Decrease in Accounts Receivable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Gain on sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">90<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Accounts Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">32<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Wages Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">80<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Income Taxes Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">18<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">150<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Used for Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Receipt from Issuance of Common Stock<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,000<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from issuance of long-term debt<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">500<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Payment of Dividends<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Increase (Decrease) in Cash<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><strong>$ 4,530<\/strong><\/td>\n<td class=\"r\"><strong>$ 670<\/strong><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total debits\/credits<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\">$ 5,110<\/td>\n<td class=\"r\">$ 5,110<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Dividends reduce retained earnings:<br \/>\n&nbsp;<\/p>\n<table class=\"fin-table gridded\">\n<caption>RUMBLE CORP<br \/>\nSpreadsheet for Statement of Cash Flows<br \/>\nYear Ended December 31, 20X1<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th rowspan=\"2\" scope=\"col\">Panel A &#8211; Balance Sheet<\/th>\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\n<th rowspan=\"2\">12\/31\/X1<\/th>\n<\/tr>\n<tr>\n<th>Debit<\/th>\n<th>Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cash<\/td>\n<td class=\"r\">1,640<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,640<\/td>\n<\/tr>\n<tr>\n<td>Accounts Receivable<\/td>\n<td class=\"r\">1,750<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\">1,735<\/td>\n<\/tr>\n<tr>\n<td>Equipment<\/td>\n<td class=\"r\">24,500<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">60<\/td>\n<td class=\"r\">25,020<\/td>\n<\/tr>\n<tr>\n<td>Accumulated Depreciation<\/td>\n<td class=\"r\">(1,540)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">125<\/td>\n<td class=\"r\">(1,665)<\/td>\n<\/tr>\n<tr>\n<td>Total Assets<\/td>\n<td class=\"r\">26,350<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">200<\/td>\n<td class=\"r\">26,730<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Accounts Payable<\/td>\n<td class=\"r\">(1,007)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">32<\/td>\n<td class=\"r\">(1,039)<\/td>\n<\/tr>\n<tr>\n<td>Wages Payable<\/td>\n<td class=\"r\">(55)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">80<\/td>\n<td class=\"r\">(135)<\/td>\n<\/tr>\n<tr>\n<td>Income Taxes Payable<\/td>\n<td class=\"r\">(42)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">18<\/td>\n<td class=\"r\">(60)<\/td>\n<\/tr>\n<tr>\n<td>Note Payable &#8211; Long Term<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">500<\/td>\n<td class=\"r\">(500)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities<\/td>\n<td class=\"r\">(1,104)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">630<\/td>\n<td class=\"r\">(1,734)<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Common Stock<\/td>\n<td class=\"r\">(12,500)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,000<\/td>\n<td class=\"r\">(13,500)<\/td>\n<\/tr>\n<tr>\n<td>Retained Earnings<\/td>\n<td class=\"r\">(12,746)<\/td>\n<td class=\"r highlight\">460<\/td>\n<td class=\"r\">2,610<\/td>\n<td class=\"r\">(14,896)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities and Stockholders&#8217; Equity<\/td>\n<td class=\"r\">(26,350)<\/td>\n<td class=\"r\">460<\/td>\n<td class=\"r\">4,240<\/td>\n<td class=\"r\">(30,130)<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">1,040<\/td>\n<td class=\"r\">4,440<\/td>\n<td class=\"r\">(3,400)<\/td>\n<\/tr>\n<tr>\n<th scope=\"\">Panel B &#8211; Statement of Cash Flows<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Income<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">2,610<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Depreciation Expense &#8211; Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">125<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Decrease in Accounts Receivable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Gain on sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">90<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Accounts Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">32<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Wages Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">80<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Income Taxes Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">18<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">150<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Used for Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Receipt from Issuance of Common Stock<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,000<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from issuance of long-term debt<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">500<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Payment of Dividends<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">460<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Increase (Decrease) in Cash<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><strong>$ 4,530<\/strong><\/td>\n<td class=\"r\"><strong>$ 1,130<\/strong><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total debits\/credits<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\">$ 5,570<\/td>\n<td class=\"r\">$ 5,570<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>And the final step is to post the change in cash:<br \/>\n&nbsp;<\/p>\n<table class=\"fin-table gridded\">\n<caption>RUMBLE CORP<br \/>\nSpreadsheet for Statement of Cash Flows<br \/>\nYear Ended December 31, 20X1<\/caption>\n<thead>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th rowspan=\"2\" scope=\"col\">Panel A &#8211; Balance Sheet<\/th>\n<th rowspan=\"2\" scope=\"col\">1\/1\/X1<\/th>\n<th colspan=\"2\" scope=\"col\">Transaction Analysis<\/th>\n<th rowspan=\"2\">12\/31\/X1<\/th>\n<\/tr>\n<tr>\n<th>Debit<\/th>\n<th>Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cash<\/td>\n<td class=\"r\">1,640<\/td>\n<td class=\"r highlight\">3,400<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">5,040<\/td>\n<\/tr>\n<tr>\n<td>Accounts Receivable<\/td>\n<td class=\"r\">1,750<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\">1,735<\/td>\n<\/tr>\n<tr>\n<td>Equipment<\/td>\n<td class=\"r\">24,500<\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\">60<\/td>\n<td class=\"r\">25,020<\/td>\n<\/tr>\n<tr>\n<td>Accumulated Depreciation<\/td>\n<td class=\"r\">(1,540)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">125<\/td>\n<td class=\"r\">(1,665)<\/td>\n<\/tr>\n<tr>\n<td>Total Assets<\/td>\n<td class=\"r\">26,350<\/td>\n<td class=\"r\">3,980<\/td>\n<td class=\"r\">200<\/td>\n<td class=\"r\">30,130<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Accounts Payable<\/td>\n<td class=\"r\">(1,007)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">32<\/td>\n<td class=\"r\">(1,039)<\/td>\n<\/tr>\n<tr>\n<td>Wages Payable<\/td>\n<td class=\"r\">(55)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">80<\/td>\n<td class=\"r\">(135)<\/td>\n<\/tr>\n<tr>\n<td>Income Taxes Payable<\/td>\n<td class=\"r\">(42)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">18<\/td>\n<td class=\"r\">(60)<\/td>\n<\/tr>\n<tr>\n<td>Note Payable &#8211; Long Term<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">500<\/td>\n<td class=\"r\">(500)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities<\/td>\n<td class=\"r\">(1,104)<\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">630<\/td>\n<td class=\"r\">(1,734)<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<td>Common Stock<\/td>\n<td class=\"r\">(12,500)<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,000<\/td>\n<td class=\"r\">(13,500)<\/td>\n<\/tr>\n<tr>\n<td>Retained Earnings<\/td>\n<td class=\"r\">(12,746)<\/td>\n<td class=\"r\">460<\/td>\n<td class=\"r\">2,610<\/td>\n<td class=\"r\">(14,896)<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities and Stockholders&#8217; Equity<\/td>\n<td class=\"r\">(26,350)<\/td>\n<td class=\"r\">460<\/td>\n<td class=\"r\">4,240<\/td>\n<td class=\"r\">(30,130)<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td class=\"r\">0<\/td>\n<td class=\"r\">4,440<\/td>\n<td class=\"r\">4,440<\/td>\n<td class=\"r\">0<\/td>\n<\/tr>\n<tr>\n<th scope=\"\">Panel B &#8211; Statement of Cash Flows<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Income<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">2,610<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Depreciation Expense &#8211; Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">125<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Decrease in Accounts Receivable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Gain on sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">90<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Accounts Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">32<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Wages Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">80<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Income Taxes Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">18<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Operating Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Paid for Acquisition of Plant Assets<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">580<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from sale of equipment<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">150<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Used for Investing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Flows from Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Receipt from Issuance of Common Stock<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,000<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from issuance of long-term debt<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">500<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash Payment of Dividends<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">460<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Cash Provided by Financing Activities<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net Increase (Decrease) in Cash<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r highlight\">3,400<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\"><strong>$ 4,530<\/strong><\/td>\n<td class=\"r\"><strong>$ 4,530<\/strong><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Total debits\/credits<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\">$ 8,970<\/td>\n<td class=\"r\">$ 8,970<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>And now the numbers are all in place, everything is accounted for, and all we have to do is place the numbers into the proper format along with some supplemental information we\u2019ll have to get from the general ledger:<\/p>\n<p><span class=\"u-sr-only\">Subcategory, <\/span><strong>Cash flows from financing activities<\/strong><\/p>\n<table class=\"fin-table acctstatement\">\n<caption>Rumble Corp.<br \/>\nStatement of Cash Flows<br \/>\nfor the year ended 12\/31\/x1<\/caption>\n<thead>\n<tr class=\"u-sr-only\">\n<th scope=\"col\">Description<\/th>\n<th scope=\"col\">Amount<\/th>\n<th scope=\"col\">Total<\/th>\n<\/tr>\n<tr>\n<td><\/td>\n<th colspan=\"2\" scope=\"col\"><i>In millions<\/i><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td colspan=\"3\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Cash flows from operating activities<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Net income<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">$ 2,610<\/td>\n<\/tr>\n<tr>\n<td>Adjustments to reconcile net income to net cash provided by operating activities:<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Depreciation and amortization<\/td>\n<td class=\"r\">125<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Decrease in Accounts Receivable<\/td>\n<td class=\"r\">15<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Gain on sale of equipment<\/td>\n<td class=\"r\">(90)<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in Accounts Payable<\/td>\n<td class=\"r\">32<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in income taxes payable<\/td>\n<td class=\"r\">80<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Increase in other liabilities<\/td>\n<td class=\"r\">18<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Total adjustments<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">180<\/td>\n<\/tr>\n<tr>\n<td>Net cash from operating activities<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span><\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span><br \/>\n$2,790<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"3\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Cash flows from investing activities<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Purchase of property, plant, and equipment<\/td>\n<td class=\"r\">(580)<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from sale of equipment<\/td>\n<td class=\"r\">150<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net cash used in investing activities<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span><\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span><br \/>\n(430)<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"3\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from issuance of common stock<\/td>\n<td class=\"r\">1,000<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Proceeds from issuance of long-term debt<\/td>\n<td class=\"r\">500<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Dividends paid<\/td>\n<td class=\"r\">(460)<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Net cash used in financing activities<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span><\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span><br \/>\n1,040<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"3\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Net increase in cash and cash equivalents<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\">3,400<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Cash and cash equivalents at beginning of period<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,640<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Cash and cash equivalents at end of period<\/th>\n<td class=\"r\"><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span><br \/>\n$5,040<br \/>\n<span class=\"u-sr-only\">Double Line<\/span><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"3\"><\/td>\n<\/tr>\n<tr>\n<td>Supplemental information:<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr>\n<td>Cash paid for interest<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">$ 310<\/td>\n<\/tr>\n<tr>\n<td>Cash paid for income taxes<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">$ 1,700<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Congratulations! You\u2019ve now worked all the way through the worksheet and created the Statement of Cash Flows.<\/p>\n<div class=\"textbox tryit\">\n<h3>practice question<\/h3>\n<p>\t<iframe id=\"lumen_assessment_23846\" class=\"resizable\" src=\"https:\/\/assessments.lumenlearning.com\/assessments\/load?assessment_id=23846&#38;embed=1&#38;external_user_id=&#38;external_context_id=&#38;iframe_resize_id=lumen_assessment_23846\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:400px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-4095\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Using a Worksheets (Indirect Method). <strong>Authored by<\/strong>: Joseph Cooke. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":90270,"menu_order":15,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Using a Worksheets (Indirect Method)\",\"author\":\"Joseph Cooke\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-4095","chapter","type-chapter","status-publish","hentry"],"part":850,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/4095","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/users\/90270"}],"version-history":[{"count":12,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/4095\/revisions"}],"predecessor-version":[{"id":5741,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/4095\/revisions\/5741"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/parts\/850"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/4095\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/media?parent=4095"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=4095"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/contributor?post=4095"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/license?post=4095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}