Event 1
Sold lemonade for $120 cash (COGS $40)
Event 2
Purchased lemon squeezer for $50 cash
Income Statement
Revenue
$120
COGS (Ingredients)
-$40
Net Income
$80
Cash Flow Statement
Cash from Operations
$80
Equipment Purchase
-$50
Ending Cash
$110
Balance Sheet
Assets
Cash
$110
Equipment
$50
Total Assets
$160
Liabilities & Equity
Retained Earnings
$160
Total L&E
$160