Post on 09-Mar-2015
Medieval Accounting
Ivan-Balance Sheet-Beginning (in Bushels of Wheat)
Assets Liabilities and Owner's EquitySeed 20Fertilizer 2Ox 40Land 100 Baron's Equity 162Total 162 Total 162
Frederick-Balance Sheet-Beginning (in Bushels of Wheat)
Assets Liabilities and Owner's EquitySeed 10Fertilizer 1Ox 40Land 50 Baron's Equity 101Total 101 Total 101
Ivan-Income Statement(in Bushels of Wheat)
Wheat 243Production Expenses
Seed 20Fertilizer 2Ox Usage 4
Plow Usage 3 29Earnings 214
Owner Withdrawal 20Income to Retained Earnings 194
Frederick-Income Statement(in Bushels of Wheat)
Wheat 138Production ExpensesSeed 10Fertilizer 1
Ox Usage 4Plow Usage 1 16Earnings 122Owner Withdrawal 30Income to Retained Earnings 92
Ivan-Balance Sheet-End(in Bushels of Wheat)
Assets Liabilities and Owner's EquitySeed 223 Liabilities (Plow) 3Ox 36 Baron's EquityLand 100 Contributed 162
Retained 194Total 359 Total 359
Frederick-Balance Sheet-End(in Bushels of Wheat)
Assets Liabilities and Owner's EquitySeed 105Ox 36 Baron's EquityPlow 2 Contributed 101Land 50 Retained 92Total 193 Total 193
Frederick-Statement of Cash Flows(in Bushels of Wheat)
Indirect MethodOperating ActivitiesNet Income (Wheat seed) 122Plus-Non Wheat OutlaysOx Usage 4Plow Usage 1Decrease in Fertilizer Inventory 1Net Cash Flow from Operations 128Investing ActivitiesCapital Expenditures (plow) (3)Net Cash Flow from Investing Activities (3)Financing ActivitiesBaron Withdrawal (30)Net Cash Flow from Investing Activities (30)Increase (decrease) in Wheat 95Wheat Beginning of Period 10
Wheat End of Period 105
Can you create a statement cash of cash flows for Ivan? How would the liability that Ivan created with thePlowmaker affect his cash flows for the period.
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Professor Omer