Now, let's move to the financing activities of the statement of cash flow. What types of things are included in that section? Well, recall that's where we include cash flows related to transactions with investors or owners, or with creditors. So let's look at the balance sheet and see if we see anything that sounds like that. Well, we have a loan payable account. That would hold any transactions we have with the bank, one of our creditors. And we have a capital stock account. That would include any transactions we have, either buying or selling stock to our investors or owners. So let's start with the loans payable account. That account balance went up by $30,000. Let's remind ourselves what happened. We started with a 0 balance, we end with a $30,000 balance. Remember, at the beginning of the year, the company took out a loan for $40,000, so they got a cash inflow of 40,000. And at the end of the year, the company made a payment on the loan principal, a payment of $10,000, so that's a cash outflow. So let's put both of those in the financing activities section of the statement of cash flow. Proceeds from taking out loan and repayment of loan principal. Okay, the proceeds that the company got from taking out the loan were $40,000. And the payment of principal was $10,000, and I've put that in parentheses, because that's an outflow. Now, importantly here, we can move back to the balance sheet and check off the loan payable account. Because we've included the entire $30,000 change. But notice that we've included that change in two pieces, proceeds from taking out the loan and cash outflows from making a repayment of the loan principal. We try to separate those items when possible, when the information is available. Because it's something that's informative to the reader or the user of this financial statement. To know how much the company gained by taking out a loan, and how much cash the company had to pay to make that loan repayment. We have one more, let's look back at the balance sheet, we have one more account here, and that's that capital stock account. Again, that captures transaction with owners, so its balance changed by $60,000. Recall that the company got $60,000 in cash from issuing that stock, To Mary, Joe, and Josh. So I'm going to put proceeds from issuing stock, $60,000. So let's go back to the balance sheet. And notice that we've included the entire change in that balance sheet account on the statement of cash flow. So I check off that balance sheet account. Back to the statement of cash flow, we total up the cash flow from financing activities, and that totals to an inflow of $90,000. If I add cash flow from operations, cash flow from investing, and cash flow from financing activities, then I should get the change in cash. So if I add these three, I see a change in cash of $3,010. I can check that, right? Because what I hope that that $3,010 is, is exactly equal to the change in the cash balance on the balance sheet. So let's go the balance sheet and check to see if we got this right. If I look at the cash account at the top of the balance sheet, indeed, it does change by $3,010. So I can feel good that I've arrived at a change in cash number that matches the change in cash on the balance sheet. And notice also that I can check that account off the balance sheet. Because, back to the statement of cash flow, I've included that number here at the bottom. So that completes the work on the statement of cash flow for The Garden Spot for year one. Here's what it would look like if we prettied it up and had good font and good handwriting, and all of that. So that's there available for you. And let's now look at the financial statement framework and sort of put the statement of cash flow numbers in the context that we've been working with here with this financial statement framework. Recall the balance sheet, beginning balance sheet, no assets, no liabilities and owner's equity. At the end of the year, assets of 125,610, liabilities, owner's equity of 125,610. Our retained earnings started at 0, ended at 5,610. We had earnings of 5,610, and we paid no dividends. So the income statement does explain the change in the retained earnings account. We started the year with 0 cash, we end with 3,010. And the change in cash on the statement of cash flow is indeed 3,010. So that statement we can refer to to understand what things happened that caused cash to change from 0 to 3010 on the year-end balance sheet.