Medieval Accounting

Ivan-Balance Sheet-Beginning (in Bushels of Wheat) Assets Seed Fertilizer Ox Land Total 20 2 40 100 Baron's Equity 162 Total 162 162 Liabilities and Owner's Equity

Frederick-Balance Sheet-Beginning (in Bushels of Wheat) Assets Seed Fertilizer Ox Land Total 10 1 40 50 Baron's Equity 101 Total 101 101 Liabilities and Owner's Equity

Ivan-Income Statement (in Bushels of Wheat) Wheat Production Expenses Seed Fertilizer Ox Usage Plow Usage Earnings Owner Withdrawal Income to Retained Earnings 20 2 4 3 29 214 20 194 243

Frederick-Income Statement (in Bushels of Wheat) Wheat Production Expenses Seed Fertilizer 10 1 138

Ox Usage Plow Usage Earnings Owner Withdrawal Income to Retained Earnings

4 1 16 122 30 92

Ivan-Balance Sheet-End (in Bushels of Wheat) Assets Seed Ox Land Total Liabilities and Owner's Equity 223 Liabilities (Plow) 36 Baron's Equity 100 Contributed Retained 359 Total 162 194 359 3

Frederick-Balance Sheet-End (in Bushels of Wheat) Assets Seed Ox Plow Land Total 105 36 Baron's Equity 2 Contributed 50 Retained 193 Total 101 92 193 Liabilities and Owner's Equity

Frederick-Statement of Cash Flows (in Bushels of Wheat) Indirect Method Operating Activities Net Income (Wheat seed) Plus-Non Wheat Outlays Ox Usage Plow Usage Decrease in Fertilizer Inventory Net Cash Flow from Operations Investing Activities Capital Expenditures (plow) Net Cash Flow from Investing Activities Financing Activities Baron Withdrawal Net Cash Flow from Investing Activities Increase (decrease) in Wheat Wheat Beginning of Period (30) (30) 95 10 (3) (3) 4 1 1 128 122

Wheat End of Period

105

Can you create a statement cash of cash flows for Ivan? How would the liability that Ivan created with the Plowmaker affect his cash flows for the period.

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