170. The assets and liabilities of S&P Day Spa at December 31, 2011, and its revenue and expenses for the year are listed below. The Retained Earnings balance was $57,830 at January 1, 2011.
Accounts Payable$ 4,375Spa Operating Expense$33,760
Accounts Receivable8,490Office Expense2,470
Cash13,980Spa Supplies9,230
Fees Earned98,435Wages Expense26,580
Spa Furniture & Equipment56,000Dividends18,000
Computers2,130Capital Stock10,000
Based on the data provided for S&P Day Spa, prepare a balance sheet as of December 31, 2011.
171. A summary of cash flows for Lopez Wedding Planning for the year ended December 31, 2011 is shown below.
Cash receipts:
Cash received from customers$57,360
Cash received from bank loan15,000
Cash payments:
Cash paid for operating expenses$12,120
Cash paid for equipment18,070
Cash paid for party supplies9,480
Dividends12,000
The cash balance as of January 1, 2011$15,580
Prepare a statement of cash flows for Lopez Wedding Planning for the year ended December172. Explain the interrelationship between the balance sheet and the statement of cash flows.