Cash Flow

January 1 – December 31, 2022 · Indirect method · Ties to bank statement balances

$101,790Operating

($30,180)Investing

($37,720)Financing

$64,180Ending cash

Operating activities

Net income adjusted for non-cash items and working capital

AccountAmount

Net income

$94,620

Depreciation

$11,240

Increase in accounts receivable

($7,100)

Increase in card balance

$1,240

Increase in accrued payroll & taxes

$1,790

Net cash from operating activities

$101,790

Investing activities

Equipment purchases traced to statement transactions

AccountAmount

Equipment purchases

($30,180)

Net cash used in investing activities

($30,180)

Financing activities

Owner and loan activity, each confirmed in the judgment trail

AccountAmount

Equipment loan principal payments

($7,720)

Owner contributions

$18,000

Owner distributions

($48,000)

Net cash used in financing activities

($37,720)

Reconciliation of cash

Proof against December bank statements

AccountAmount

Cash at January 1, 2022

$30,290

Net change in cash

$33,890

Cash at December 31, 2022

$64,180

✓ Ending cash of $64,180 equals the sum of December statement ending balances across both bank accounts.

✓ Owner distributions shown in financing — never netted against operating results.