Preparation of cash flow statement using the information given.
Using the income and expenditure information for 2007, complete a cash flow statement for Kevin and Stacy. Date this statement January through December of 2007. Divide the mortgage payment into its parts -- PI (principal & interest) is the mortgage payment, taxes are property taxes, and home insurance is homeowners insurance. Be sure to total your entries for each row in the third column of the cash flow statement.
Did Kevin and Stacy have a cash surplus or a cash deficit in 2007? What impact would the 2007 cash surplus (deficit) have on their January 1, 2008 balance sheet?