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THE PLAYGROUND

One transaction, three statements

Follow the ripple through the accounts.

LIVE EXPERIMENT

One transaction, three statements

InvestigateDoes borrowing money improve net income?

ASSETS100Cash 100 · Receivables 0 · Equipment 0
=
LIABILITIES0Borrowings
+
EQUITY100100 contributed + 0 earnings
Net income0
Operating cash flow0
Investing cash flow0
Financing cash flow0

Ending cash 100 = opening 100 + operations 0 + investing (0) + financing 0

Transaction log (0 most recent)

Post a transaction to start.

Model assumptions & units

A simplified cash-and-credit workshop. Purchases are equipment, and sales are services with no additional cost in this model. The cash rollforward includes all posted transactions.

Learn the thinking behind it