Medieval Accounting

Ivan-Balance Sheet-Beginning (in Bushels of Wheat)

Assets Liabilities and Owner's EquitySeed 20Fertilizer 2Ox 40Land 100 Baron's Equity 162Total 162 Total 162

Frederick-Balance Sheet-Beginning (in Bushels of Wheat)

Assets Liabilities and Owner's EquitySeed 10Fertilizer 1Ox 40Land 50 Baron's Equity 101Total 101 Total 101

Ivan-Income Statement(in Bushels of Wheat)

Wheat 243Production Expenses

Seed 20Fertilizer 2Ox Usage 4

Plow Usage 3 29Earnings 214

Owner Withdrawal 20Income to Retained Earnings 194

Frederick-Income Statement(in Bushels of Wheat)

Wheat 138Production ExpensesSeed 10Fertilizer 1

Ox Usage 4Plow Usage 1 16Earnings 122Owner Withdrawal 30Income to Retained Earnings 92

Ivan-Balance Sheet-End(in Bushels of Wheat)

Assets Liabilities and Owner's EquitySeed 223 Liabilities (Plow) 3Ox 36 Baron's EquityLand 100 Contributed 162

Retained 194Total 359 Total 359

Frederick-Balance Sheet-End(in Bushels of Wheat)

Assets Liabilities and Owner's EquitySeed 105Ox 36 Baron's EquityPlow 2 Contributed 101Land 50 Retained 92Total 193 Total 193

Frederick-Statement of Cash Flows(in Bushels of Wheat)

Indirect MethodOperating ActivitiesNet Income (Wheat seed) 122Plus-Non Wheat OutlaysOx Usage 4Plow Usage 1Decrease in Fertilizer Inventory 1Net Cash Flow from Operations 128Investing ActivitiesCapital Expenditures (plow) (3)Net Cash Flow from Investing Activities (3)Financing ActivitiesBaron Withdrawal (30)Net Cash Flow from Investing Activities (30)Increase (decrease) in Wheat 95Wheat Beginning of Period 10

Wheat End of Period 105

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

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Professor Omer