Pejenca Case Study

Pejenca Industrial Supply

Statement of Changes

August 31st 1998-August 31st 2002 (4 years)

Change in Cash (2002-1998)

= 277.4–93.9

= 183.5

Sources

Prepaid Expenses                                                                  200

Accounts Payable                                                                 38,500

Due to Related Parties                                                         80,300

Net Fixed Assets                                                                 2,200

Incorporate Costs                                                                 800

Loan from Shareholders                                                         300,000

Retained Earnings                                                                 231,500

TOTAL                                                                        653,500

Uses

Accounts Receivable                                                         193,800

Receivable from Related Parties                                                 4,000

Inventory                                                                         189,500

Income Taxes Recoverable                                                         5,600

Income Taxes Payable                                                         2,100

Current Portion of Long-term Debt                                                 30,000

Mortgage                                                                         45,000

TOTAL                                                                         470,000

NET CASH FLOW                                                                183 500