Directions In Part I, next to each item listed, you will identify which statement the item would appear. You will need to determine whether it would appear on the income statement (I), balance sheet (B), or statement of cash flows (CF). Then, for each group, explain the difference among the items listed. Finally, in Part II, discuss the relationship between the three financial statements.
Part I
Set 1:
Inventory, ending balance
Cost of goods (inventory) sold during the period
Cash paid to suppliers during the period
Accounts payable, ending balance
Difference:
Set 2:
Accounts receivable, ending balance
Cash received from customers
Sales
Difference:
Set 3:
Wage expense for the period
Wages payable, ending balance
Cash paid for wages during the period
Difference:
Set 4:
Property, plant, and equipment, ending balance
Cash paid for property, plant, and equipment during the period
Cash received from selling property, plant, and equipment during the period
Depreciation expense during the period (expense of using property, plant, and equipment during the period)
Difference:
Set 5:
Notes payable, ending balance
Cash received from borrowing money during the period
Cash used to pay off notes payable during the period
Interest expense during the period (expense of using borrowed money during the period)
Difference:
Part II
Discuss the Relationship between the financial statements identified: