A sole proprietorship was established on January 1, 2013, when it received $60,000 cash from Juanita Perez, the owner. During 2013, the business earned $160,000 in cash revenues and paid $124,000 in cash expenses. Perez withdrew $18,000 from the business during 2013.
Required:
Indicate how each of the transactions and events for the Perez sole proprietorship affects the financial statements model, below. Indicate dollar amounts of increases and decreases. For 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.

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The Answer of A sole proprietorship was established on January 1, 2013, when it received $60,000 cash from Juanita Perez, the owner. During 2013, the business earned $160,000 in cash revenues and paid $124,000 in cash expenses. Perez withdrew $18,000 from the business during 2013.
Required:
Indicate how each of the transactions and events for the Perez sole proprietorship affects the financial statements model, below. Indicate dollar amounts of increases and decreases. For 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, 2013, When