A sole proprietorship was established on January 1, Year 1, when it received $30,000 cash from Connor Howard, the owner. During Year 1, the business earned $80,000 in cash revenues and paid $62,000 in cash expenses. Howard withdrew $9,000 from the business during Year 1.
Required:
Indicate how each of the transactions and events for the Howard sole proprietorship affects the financial statements model, below. Indicate dollar amounts of increases and decreases. With regards to the statement of cash flows, indicate whether each is an operating activity (OA), investing activity (IA), or financing activity (FA). Indicate NA if an element is not affected by a transaction.

Question

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The Answer of A sole proprietorship was established on January 1, Year 1, when it received $30,000 cash from Connor Howard, the owner. During Year 1, the business earned $80,000 in cash revenues and paid $62,000 in cash expenses. Howard withdrew $9,000 from the business during Year 1.
Required:
Indicate how each of the transactions and events for the Howard sole proprietorship affects the financial statements model, below. Indicate dollar amounts of increases and decreases. With regards to the statement of cash flows, indicate whether each is an operating activity (OA), investing activity (IA), or financing activity (FA). Indicate NA if an element is not affected by a transaction.

A Sole Proprietorship Was Established on January 1, Year 1