Mike Renner operates his own catering service. Summary financial data for March are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the balance sheet. Each increase and decrease in owners' equity, except transaction (4), affects net income.
Capital Retained
Cash + Land = Liabilities + Stock + Earnings
Bal. 18,000 54,000 5,000 10,000 57,000
1.+25,000 +25,000
2. -10,000 +10,000
3. -16,000 -16,000
4. -3,000 -3,000
Bal. 14,000 64,000 5,000
10,000 63,000
a. Describe each transaction.
b. What is the amount of net decrease in cash during the month?
c. What is the amount of net increase in retained earnings during the month?
d. What is the amount of the net income for the month?
e. How much of the net income for the month was retained in the business?
f. What is the amount of net cash flows from operating activities?
g. What is the amount of net cash flows from investing activities?
h. What is the amount of net cash flows from financing activities?