Overview
1 Record the transactions on the exhibit and/or spreadsheet.
2 The next part requires you to prepare financial statements. To facilitate this, do the following:
- Cash transactions: Make note of whether the item impacts operating, investing, or financing activities
- Income statement transactions: Make note of what income statement line it impacts (e.g., Sales, Depreciation, Other operating expenses.
Exercise 2Using the templates in Exhibit 2 or the accompanying spreadsheet, prepare the following financial statements for Yash:· Balance sheet at April 30, 2024· Income statement for April 2024 (i.e., the month ended April 30, 2024)· Cash flow statement for April 2024o Show both the direct method and indirect method format for cash from operating activitieso When preparing the indirect method cash flow statement, note that part of the accounts payable pertains to the April 2 equipment purchase and is therefore related to investing activities.· Statement of stockholders’ equity for April 2024