A: Receivables

Receivables known as current assets on the balance sheet. It is an expected payments

from other companies, individuals, governmental agencies or investors that are owe to
the company. There have two types of receivables, one is short term receivable that
any amount of payment is due within 12 months. For second is long term receivables
that the maturity amount of payments exceeds a year.
Outdoor Living Spaces companys customers had owe company $61,500. As a result,
the company expects to be able to collect $61,500 from its customer. It is also the
expected cash that the companys management use in planning its future cash
expenditure.

B: Current portion of long term debt

It is a portion of the balance sheet that the total amount of long term debt that must be
paid within the next year. When the debt payment is set to be made in a longer time
than a year, it is called long term debt. But for the current portion of long term debt
means when a debt payment will due within a year.
In outdoor living space company, the amount of current portion of long term debt in
part of liabilities only paid $1,000 that due within a year. For the remaining long term
debt will be paid within the next year with the amount of $23,000.

C: Retained Earnings
Retained earnings will appear in companys balance sheet and also in income
statement. It is part of the companys net earnings after taxes kept to accumulate, after
dividends are paid. After a profitable period for a company, they will deliver some of
its income to shareholders as dividends and the remaining will as the retained
earnings. Retained earnings as an essential figure for investors and analyst in
evaluating a company. Normally, the company will invest back into specific area
where the growth appear most promising. The investors prefer to see the company
year to year growth consistently in retained earnings. For investors, the most excellent

is where the company have a steadily increase in dividend payouts but still have a
steady growth in retained earnings.
In outdoor living space company, the retained earnings is quite satisfied with the
amount of $79,859 in stockholders equity.

D: Depreciation expenses
It is a non-cash expenses or cash will not be involved in. Depreciation reduces in
income statement but it does not reduces the cash account on the statement of cash
flow. It only add back the amount of depreciation expenses from the net income.
Outdoor living space company have $9,000 of depreciation expenses in operating
expenses on the statement of cash flows. The $9,000 as a reduction from expenses and
it has no any impact on cash flows.

E: Receivable, decrease (increase)

F: Purchases of property, plant, and equipment

Outdoor living spaces company had purchases the property, plantation and equipment.
They had expenses about $15,600 for the investing activities.

G: Cost of sales
The direct costs attributable to the production of the goods sold by a company. The
amount includes the cost of the materials used in creating the goods added with the
direct labor costs used in produce the good. Cost pf sales appears on the income
statement and can be deducted from sales to calculate a company's gross profit.
Outdoor living spaces company spend about $240,700 in cost of sales. Almost have a
half percentage from the sales about $346,900 in income statement. It means that the
labour cost or material cost in the production of the products is quite high for this
year.