Live from the MGM Grand Hotel in Las Vegas. Extracting the signal from the noise. It's theCUBE, covering Splunk.com 2015. Brought to you by Splunk. Now, here are your hosts, John Furrier and George. Okay, welcome back everyone. We are here live in Las Vegas at Splunks.com for 2015. Hashtag Splunk.com. I'm John Furrier, the founder of SiliconANGLE. I'm George Gilbert. This is theCUBE's SiliconANGLE's flagship program. We go out to the event and extract the signal from the noise. Our next guest is Rick Fitz, SVP of IT Markets from Splunk. Welcome to theCUBE. Thank you. So, ITOps, DevOps, IT automation, IT service management. Yeah. A traditional walking and tackling market. Yeah. Getting some intelligence, some machine learning, some big data, game changing. We're trying to bring sexy back. You heard this morning from the keynote. Absolutely.  And not a lot of innovation occurring in that space. In fact, I think a lot of vendors are actually walking away to some degree, moving on to other things. And we are absolutely focused on it, maniacally. IT transformation is a big topic, digital transformation, whatever buzzword people talk about it, certainly IT is becoming an integral part of the organization app development, top-lying growth, not just cost savings. Absolutely. Or provisioning iPhones for people. It really becomes very integral. And data's a key point of that. Right. It's also gotten more complex. Yeah, complexity keeps going up. So machine learning is a theme here. Yeah. So talk about the dynamic of data-driven, IT automation, IT intelligence, in this new normal of IT being a critical part of the infrastructure and business. Yeah, absolutely. I mean, as you continue, and look, the business has not changed. I mean, the drive for innovation just continues to outpace the ability for IT to keep up. That is a constant. It's been a constant for a long, long time. But it actually derives new approaches. I mean, you do things at the cost of the business above everything else. So forget about having to run it later on. Forget about having to take care of it as it falls over. And so IT sometimes is neglected in that regard. So what we're finding is a lot of customers actually using machine data as a way to get instant access to information, any information so that they can actually troubleshoot the environment or find out drive information or business intelligence from the data itself. So it's been just a wonderful journey as we continue to add more solution capabilities into this spunk enterprise platform. How has the cloud and internet of things in particular, in terms of megatrends, impacted the IT role? Because obviously cloud, we've been covering that here at SiliconANGLE for many, many years. Great disruptor, great economics. But behind me, you can see a car is being instrumented. But that highlights, kind of puts a sexy feel on internet of things. But data center guys have known about internet of things forever. It's in your DNA and squungs. I mean, log files are the result of those things called machines. Yeah, well first on the cloud side, what we're seeing is customers aren't making that journey overnight. They are absolutely taking, transforming business processes that they can as quickly as can to cloud-based services and then moving components of their data center into the cloud. So that requires a hybrid approach. I mean, you cannot make that transformation without paying attention to what you have, or it's connected to what is new. And so that's definitely an approach that we take. As far as the trend, or the mega trend of internet of things, it's really what you talk about. It's just simply a proliferation, as I like to say sometimes in a really geeky way, of IP addresses, right? And if there's more... Or I do the network. Yeah, there's more things out there, a lot more of them. And that's just has to do with the fact that technology continues to shrink its footprint, and therefore we as innovators can do a lot of interesting things with technologies. But what it does mean is in these small millions of things, they often send back small amounts of information about themselves, for that matter. But you get small amounts of information from millions of things, and you need to be able to absorb that. And our announcement today on 6.3, Enterprise 6.3, for example, was our HTTP collection feature and capability is a good example of capabilities where we're allowing us to consume messages, or if you will, receive messages from these devices directly into Splunk. And therefore we can actually monitor and manage those things. Yeah, I mean, in your example of the data, I'm not saying big data, it's actually data, small data, but happening very fast in some cases, or slow trickling in. That's right. Either way, these data points really render potentially insights. Yeah, it comes back down to the visualization and or exploring what would look like an anomaly on paper. That's right. But can double down into some sort of workflow change, business model change. Can you give an example of what you've seen in that area, like customer example, or some use case where you're like, hey, you know, before Splunk, after Splunk, these things have happened? Well, yeah, I mean, you saw today in a couple of the keynotes, I think that were really interesting. And they just, they continue to, we continue to see this, where technology, Coca-Cola, for example, deploying their dispensaries out into organizations. And, you know, it's technology that's actually dispensing food product.  But much more, it's a digital piece of equipment. It's not a mechanical piece of equipment anymore. And therefore it puts off data, it puts off information that has to be managed. And, you know, when you think about that, that problem, nobody's set around and actually asked for, you know, how are we going to actually take care of and monitor this, or how are we going to make sure that it's serviceable and all that kind of stuff. That wasn't an engineering thought that went through the process. It was kind of an artifact after the thing was successful. And that then becomes a problem that is easy to solve from a big data perspective. Because if there's data available, bring it together and take a look at it. So these new digital devices, if you call it, whether it's a factory of digital devices, virtual factory, they're still instrumentable. Everything's now can be measured. So I got to ask you the big KPI questions, our key performance indicators, as it's called. People are usually behaved based on how they're measured. And compensation is tied to how they're measured. Traditionally KPI's has kind of been, in some cases, a great structural tool, but also an inhibitor to go out and to do new things. So how has this new systems of intelligence, services intelligence model, IT, SM, IT service intelligence, changing the KPI game? Because now you guys are proposing this notion that KPI's can be constructed almost on a daily basis that would have taken months and months to do. And that can ultimately change the outcome of a trajectory of a business. Yeah, well, two things. IT service intelligence, as your viewers will know, is basically a monitoring solution based on this big pool of data. So effectively, you structure the data into a series of services, and then you set various different thresholds or key performance indicators that determine if something's going to arrive. The big difference is that old way of doing this was to actually set some form of a static threshold or something that you would say, hey, we want to do 80% of this all the time. That world is gone. It doesn't exist anyway. The idea that things change normally as a course of business is just happenstance. It happens all the time. And those changes are critically important. So adding machine algorithms or machine learning algorithms that actually do dynamic variance in the performance of those systems is really important. Or even looking across the data and seeing anomalous behavior, that may be good behavior, or maybe bad behavior is certainly critically important. But applying those advanced analytics into the service context is what's really critically important. And I think it's a real big game changer for the industry. You know, if you take the Coke dispenser and you just think of it as a microservice. You know, the proliferation of these microservices that are kind of a femoral spin-up, spin-down, you could just think of this as, you know, far more complex application landscape. The folks who did the machine learning for security said very, very domain specific. You can't just generalize it. How do you take a look at all that incredibly new, you know, variety of information coming from service intelligence and make sense out of it without over sort of taxing the operator? There's a couple things. One is generally, in the security world, you're dealing with behavior. Behavior is something that you have to look at mathematically a lot different. And it is very domain specific. In addition to that, when you're looking at metric data, time series metric data, more specifically, it's reasonably structured once you put some structure to it. And you can actually, and it's mathematical, so you can actually do specific machine algorithms that apply broadly to those sets of problems. But it's very true that you actually have to look at these problems in different ways and continue to evolve. So while we've introduced new algorithms around anomaly detection and dynamic thresholding, we have a lot more to do and more progress that will be made over the next several years. In this regard, looking at patterns of machine data, determine how things are related to one another. There's something certainly we were looking at, but there's just a tremendous opportunity to continue. As the math gets better and we learn, our data scientists learn more ways of approaching things, we're just continuing to introduce that into product. Do you see a potential conflict with ISVs? Let's say a Kafka does now the message bus that everyone loves, their idea of their goal for building a business to help customers run that. Similarly with Redis and Redis Labs. Now you'll take a holistic view of first how to monitor and maybe do more things. And that's capturing value from the customer who's like, we can't put all those things together. But those companies are also trying to make money by helping customers do just their piece. Is there a conflict? No, I don't think so. Because I think what you'll find and you talk to the customers who are out here wandering around, they often use Splunk as a data fabric within their organization. And they'll pull data from all different sources, including log files, but those sources can be other vendors' technologies. And in fact, that's why you have a number of vendors and partners here in the auditorium. And that's a good source. Now the key value prop that you will continue to maintain over time is to correlate the various different behaviors that process various silos of data. There's no doubt about that. That is in fact what we do and do well. And that correlation capability or if you will advance analytics across those data sets is what our customers continue to value. So whether it's a Redis or some other data source that's doing some special processing, they're just a data source to us. And pulling that data into this is really important. On this correlating or cross-services, in the old world, we'd call that testing by a single vendor, right? And now it's sort of out in the wild, at least for the advanced customers who are piecing all these things together. Could this be pressuring, less sophisticated customers into more homogeneous solutions? I don't think so because here's the other trend that you just mentioned, which is microservices. The fact that things are ephemeral, they're moving, they're not there, they're there one day, gone the next. You know, it's an ever-changing, ever-moving environment. And I think that trend unto itself is just saying, look, here you just have to deal with complexity, fluidity, constant change. It's just the new norm. And being able to deal with that in real time is going to be critical. So the data that you see for every instant is going to be different in the future. It's not going to be the same patterns. And that's why we have to use this advanced map moving forward to discern through all these terabytes of information, terabytes in some cases, to give you the real-world view of what you need to pay attention to. So DevOps has been a really big trend in the cloud business. So we have developers, your customers, have guys out there now developing apps on infrastructure. Yeah. So I asked Pat Gelsinger at VMworld about DevOps, and he said, interesting survey, most of the people that go to these conferences and get a little survey, they're mostly from the ops side. Yeah. So IT ops really is in the wheelhouse. So DevOps, pure developer, okay, they got local hosts on their desk, they're programming the way. They have building apps. But the IT side is really becoming a key part of the DevOps conversation. Yeah. What have you noticed in that area that's changing, that's relevant to the overall cloud migration, cloud transformation? So we were just doing a couple of stories with customers just recently. And the number one driver for these two customers in general for moving to Splunk was the way that they received requests from the development teams was give me these logs. I need these logs to actually figure out the problem. And so they were literally manually collecting log information and handing it back to developers. They eventually ran into Splunk and started using Splunk to actually do that. And they found themselves all of a sudden becoming an information service provoker back to the provider, I should say, back to the dev team. And then they started working together, which was interesting, which is the formation of any kind of DevOps movement is where development operations work tandemly to one another. And I think if you move that even forward into the future, so that's kind of the current state where we see Splunk being very successful in this DevOps space. But if you move forward into the future, I think the other thing that you're going to see is that the DevOps teams are actually the tools that they're using to deliver their software to market. And there's a lot of open source technologies being used. There's various different forms of containers, containerizations, what have you. They're actually asking IT operations to actually monitor that delivery process as well. And in combination, we're seeing a lot more of operations being a service provider to the development organization. And I think that's a very good thing to see because. And their critical success factors are going to come down to having access to the data. Oh, absolutely, absolutely. And that data is changing every day. You know, the app log is still a great source of information if you're troubleshooting in a problem that happened while you weren't there. You don't have your debugger. It's a good thing to go back to the log and start there. Tell them about some of the top conversations that you're involved with customers. And honestly, let's shoot the arrow forward. Let's connect the dots. Next five years, IT is going to be a critical piece of the infrastructure business fabric because they're becoming closer to the IT technologies and the people are getting closer to the solutions. They used to be kind of like putting out fires all the time, managing service, tracking and stacking, all that stuff that us old guys were used to seeing and doing. But now, cutting edges, real-time service cataloging, you're seeing that rise of agile. Yeah. So what does that future look like? I think a couple of things. One, I think you'll see the, you know, continue to see the outsourcing of things that don't matter to IT, right? That, a few years ago, that was, everybody was worried about their jobs because it was like, okay, they're outsourcing us. But I think we've moved past that and through that now where IT is actually looking at how do we actually add value to the business? And we're starting to see some indications of that where they're using machine data to pull business-relevant information and applying that back to the business. And in supplying that back to the business, the business is changing its behavior in real-time. And I think that's having a dramatic impact. So I would anticipate a number of the customers are in this audience today to actually, over time, become much more connected to the business and the business outcomes than they ever have been in the past. So you're saying, basically, that the job security questions, that the jeans out of the box, no worries. I think we've repassed with that. So we moved past that. Now it's, okay, job, not only job security, job promotion comes into your ability to use the data, solve the problems, so it becomes much more important. So essentially a higher skilled, if you will, not the thing we're low skilled before, but more integral part. That's right. And technology is so interconnected with business now that you can't separate them any longer. And therefore IT has to be part of it. That's a great headline for our blog post. Job security, no more worries. No more worries. Your job's not going away. We're going to shift the value shifts. That's right. You've got to keep up with it. So don't fall asleep. Don't think you can't, but you have to keep up with it. It's like the mainframe. If you were going to hang on to the mainframe, your job security was limited. Well, there's still mainframes out there. But for us older guys, some of us still know what a mainframe is, for sure. Rick, thanks so much for coming on theCUBE. Congratulations, great show. Thanks for sharing your insight and the data here on theCUBE. Appreciate it. I appreciate having the opportunity. This is theCUBE bringing you the insight and the data. We're flunking all the guests here with great questions. We'll be back with more live, day one coverage of two days here in Las Vegas at Splunk.com. We'll be right back after this short break.


Hello and welcome to the session. This is Professor Farhad. In this session, we would look at the operating section using the direct method for the statement of cash flow. This topic is covered in introductory accounting, intermediate accounting. I have more explanation in intermediate accounting and 100% sure on the CPA FAR section. The direct method, it's not only a method that you will need to know. Once you know the direct method which I will cover, you'll be able to go from cash to accrual or if you want to accrual to cash. So you would learn how to convert your financial statements and this is basically what we're doing. We're gonna take the income statement using the accrual method and convert to the cash method. That's basically what we're doing. As always, I would like to remind you to connect with me on LinkedIn. If you haven't done so, YouTube is where you would need to subscribe. I have 1,700 plus accounting, auditing, finance and tax lectures. This is a list of all the courses that I cover, including many CPA questions. If you like my lectures, please like them, share them. Subscribe to the channel. If it benefits you, it might benefit other people. So share the wealth, connect with me on Instagram. On my website, farhatlectures.com, I have additional resources for the CPA exam, the EA exam, the CMA exam and many accounting courses if you'd like to supplement your accounting education or if you'd like to pass the CPA exam and move on with your life. So if you would like to see the prerequisite, basically, if you don't know how the indirect method work, if you don't know what the cash flow statement is, please check the description for the link for those lessons, but simply put, I'm gonna be assuming here, you know what the state of cash flow looks like and you know how to prepare the indirect method, otherwise go to the description. So to work with the direct method, you need an income statement because this is what we're gonna be converting and you need a balance sheet, two-year balance sheet. So what are we really doing? Here's what we're doing. We're taking the income statement and this income statement is prepared using the accrual method and you will see by the end of this recording, I'm gonna convert this accrual method to the cash method, convert everything to cash. That's basically what I'm gonna be doing. So what am I doing? I'm taking sales, starting with sales, starting with each number. Each number on this list, I'm gonna go over each number and take it from accrual to cash. I'm gonna convert it to cash, starting with sales. Now, to convert, you have to have a related account on the balance sheet. So you have to understand the relationship between accounts and believe it or not, the direct method relies on your knowledge, relies on your T-account techniques, relies on your T-account skills on your basic accounting knowledge to understand what's happening.  So starting with sales, this is what the company reported in sales. They reported in sales, 590,000. Well, that's great, but that's accrual. That's sales accrual. Now we need to convert sales into cash received from customers. So this is not really what we're looking for. Is cash received from customers. Because, okay, we know sales is accrual. So sales include cash sales and sales on account. Well, I want to only find out how much cash that I received from my customers. How do I convert? Well, what account is related to sales on the balance sheet? Well, I'm gonna be analyzing account receivable. And here's the account receivable. The account receivable was 40,000 and it went from 40,000 to 60,000. So account receivable increased by 20,000. Well, let me interpret this in a T account setting. How do I interpret this in a T account setting? So if I have my T account, account receivable, I have the beginning balance is 40,000. The beginning balance is 40. The ending balance is 60,000. And this is right from the balance sheet. I know that the net change, I can say the net change equal to 20,000. That's all what I know. Okay. The net change equal to 20,000. What does that mean? Well, I need to find out how much, the net change is 20,000. I need to find out how much that I actually received from customers. Well, I know that my sales was 590. And what happened when you make a sale? Every time you make a sale, you debit the account receivable, you credit sales. So we're going to assume that you're going to sell on credit first. In total, we know that we have 590,000, or at least that much, 590,000. Why? Because sales is 590,000. So let's fill out the T account. Now sales, so we debited account receivable, 590,000. Now, if I take $40,000 as the beginning balance, plus 590,000, okay? That's going to give me 630,000. If my math is right, that's going to give me 630,000. I end up with 60,000. So I can conclude that I must have received in cash, 570,000. For this to balance, I need 570 balance. Why? Because every time I receive from the customer, I debit cash, credit account receivable. So I must have debited cash, 570, credited account receivable, 570. So notice, debit to receivable, 590, credit to receivable, 570, the net change is 20,000. So notice, I only received cash from customers, cash from customers, only 50,000 cash from customers. What does that mean? It means what you do is you start with your sales, you start with your sales, and what you do. If account receivable went up, which it did go up, so you start with sales, and if your account receivable went up, so if AR went up, and this is what happened here, you deduct the difference. The difference is 20,000. If your account receivable went down, you would have add to 590, why?  So in addition to the sales that you made, the customer paid off their account, which is good for you. It means you received more cash, you received more cash. Here, you received less cash. So let me show you what we did. So this is what we did. We started with 40,000, the beginning balance, the ending balance, and sales was 590, and this was basically a plug. Basically, this is what happened throughout the year. Throughout the year, this is basically the net transaction. Throughout the year, we credited sales 590, we debited cash 570, and we debited the account receivable 20. So overall, receivable went up by 20,000. After all said and done, when we net everything, this is basically what at net down to. And the formula would look something like this. You start with sales, and to convert from sales to cash received from customers, you take your sales revenue, and you add any decrease to account receivable. This is not what happened here. Here, you deduct increase in account receivable. So this example illustrates an increase in account receivable. Therefore, we took 570. So basically what ended up happening is we took 570 minus 20. I'm sorry, 590, not 570. 590 minus 20, we end up with 570. What we say, we say this is our cash flow statement. Cash received from customers, cash received from customers, 570. So what we did, now we are rebuilding our income statement using the cash method. Starting with sales, we converted our sales from the cruel sales to cash sales. Now, this applies, this same concept applies to interest revenue, dividend revenue, rental revenue. What you do is you start with the revenue, then you examine the related account receivable. If account receivable goes up, you have less cash. If account receivable goes down, you take the decrease and you add it to the revenue that you reported on the income statement. So this is how you analyze account revenue. Now, let me just make one assumption here. Hopefully this will make it easier for you to understand. Let's assume for the sake of illustration, my account receivable started at 40 and remained at 40. What does that mean? Well, if it started at 40 and remained at 40, it doesn't matter how much sales I made. If I made one zillion of sales, I must have also received one zillion of cash because the sales and the cash cancel each other out and this is 40 equal to 40. So again, if the 2019 receivable was 40,000, so whatever sales I received, it must have been all in cash because my receivable did not change. Hopefully this will help you understand what we just did. Let's move on now to, so we're done with sales. What's next on our list? Next on our list is cost of goods sold. Now we are looking at cost of goods sold. This is in a cruel figure. Now we want to convert cost of goods sold to cash paid to suppliers. Because of goods sold, basically how much did we incur in cost? Well, how do you know how much you paid for your customers? Well, we know from an accrual, we incurred 300,000. That's fine. That's fine. From an accrual perspective, we did debit at cost of goods sold 300,000. Now, however, to convert to cash, we have to examine the related account. What account are related to cost of goods sold? Well, we have, hopefully you know this, inventory. Because inventory turned into cost of goods sold. And when you buy inventory, sometime you buy them on account. So to convert cost of goods sold to cash paid to suppliers, we have to analyze two accounts. First, we have to determine how much did we purchase? And the second thing we have to find out, how much cash did we pay for those purchases? So we have to analyze two accounts. Starting with inventory. Let's analyze inventory. What do I mean by analyzing? It's like taking a T account. This is the inventory. You have a beginning balance of 70,000. You have an ending balance of 84,000. What do we know here? What do we know from this picture? We know that inventory is increased by 14,000. This is all what we know from this. That the net increase is 14,000. Now, we also know that, remember from your basic accounting, when the account, when we have inventory, let me just kind of show you, when we have inventory, when the inventory is sold, when we sell inventory, oh, let's go back to the journal entry. Here's the journal entry when we sell. We debit account receivable, credit sales, $100. I'm just making up this number. Then what we do is we debit cost of goods sold, then we credit inventory. So this is the entry that we make. Let's assume this is $80 and this is $80. What I'm trying to say is every time you reduce inventory, every time you reduce inventory, it goes on to cost of goods sold. So simply put, it seems we reduced inventory by, let me change the color here, it seems we reduced inventory by 300,000. How did I know 300,000? Well, I see here, 300,000. So I know the credit to inventory was 300,000. Now, let me do this. If I take 70,000 minus, no, 70,000 minus 300,000, that doesn't make any sense. We must have made some purchases, right? Because if I take 70,000, credit the account 300,000, it's not equal to 84. So I must have made purchases because every time I purchased inventory, I debit inventory and I credit accounts payable. So I must have bought some inventory. How much inventory did I buy? Well, what number do I need to make this account equal to 84? Well, I must have purchased. So notice what I did. I'm looking for my purchases, 314,000. Well, if I take 70,000 plus 314 minus 300, it will give me 84. So I must have purchased 314,000 of inventory. But that's not my answer. This is how much I purchased. What I need to find out is how much did I purchase pay in cash? So the first thing, so the 314,000 is my purchase. First, you find your purchase. How much did you purchase of inventory? I know I purchased 314,000 because I'm giving the beginning, I'm giving the ending, I'm giving the credit to inventory, which is the cost of goods sold. So I was able to find out 314. Well, that's good. Now I need to analyze. So I'm done with analyzing inventory. I need to analyze my accounts payable to find out how much cash that I pay. Now, every time I pay my accounts payable, I debit AP. This is AP accounts payable and I credit cash. Every time I pay my accounts payable, I debit AP and I credit cash.  So let's analyze it. Accounts, I keep writing AR, AP accounts payable. We started with 40, we end up with 35. So our accounts payable went down. And we know that we purchased 314. So throughout the year, we know that we debited inventory 314, we credited accounts payable 314. Why? I already told you, we find out how much we purchased. So this account, I'm sorry, this should be credit not debit accounts payable. So the beginning was 40. The ending was 35. And I know now that I purchased 314. Therefore I have a debit inventory credited AP. So I know from my prior computation, I increase my AP with 314. Well, now this is a plug now. This is the plug. So if I started with 40, added 314 of inventory, end up with 35. It means I paid, I paid for all of this inventory 314 and I paid an extra 5,000. It means I paid 319,000. Hold on a second, how did you do this? Well, I know I purchased 314 worth of inventory. However, my accounts payable end up being lower by 5,000. It means I paid for all the inventory and I paid off an additional 5,000 for my payable. So my payable went down. Therefore I paid for inventory 319. So how much cash did, was it paid to suppliers? 319,000. Let me show it to you in a T account, what I just did. So first you analyze inventory and we find out we purchased 314 worth of inventory. Then you have to find out how much you paid on account.  Now let's take a look at the formula. So first you have to find your purchases. You will take your cost of goods sold. If inventory goes up, you add because if you're in, it means if your inventory goes up it means you bought more inventory than last year. So your balance went up. You add it. Then after you find your purchases you have to find out if you paid more on credit or less on credit, you will take your purchases and if there is any decrease in accounts payable, any decrease, which what happened here it's a subtraction, you basically paid. Okay, if there's any increase it's a deduction. You paid less. So simply put, now we are completing our statement of cash flow using the indirect method. We started with cash received from customers. Now we are, we computed cash paid for inventory which is 319. So simply put this is our sales, cash sales and this is our cost of goods sold cash wise, cash wise 319. Why 319? Two reasons, why that 19? Because cost of goods sold was 300,000 and what happened since our inventory went up by 14 it means we purchased the inventory and since our accounts payable went down it means we paid plus five and all of those are negative because they're all paid out, okay? So that's why it's 319. So 300 was cost of goods sold, 14,000 for the additional inventory and 5,000 for the additional reduction in accounts payable. Now if inventory was going down would have deducted, would have less paid. If accounts payable went up there will be a deduction too. In the sense it's a positive cash for us, okay? Positive cash. So simply put if I want to summarize this in a journal entry everything that we did well we know that we debited cost of goods sold 300,000 you can't argue with that it's right here. We know that inventory went up the net inventory went up 14,000. Why? Because look after all said and done inventory went up by 14,000 accounts payable went down by 5,000 AP went down by 5,000 how did I know this look? Accounts payable decreased by 5,000 so the cash must have been 319. Cash must have been 319. For this entry to balance cash I'm just showing it to you from a journal entry. Once again if you know the journal entry you are really really in good shape, okay? Now let's take a look at this now we're done with sales we'll done with cost of goods sold. Now we're gonna look at wages and other operating expenses. Now what accounts are related to wages and other operating expenses? Well we have to find a related account. Well not account receivable not inventory prepaid. Prepaid is related to wages and other operating expenses. Let's analyze our wages and other operating I'm sorry let's analyze our prepaid I apologize. So prepaid is PP prepaid. We started the account with 4,000 we ended up with 6,000. So what do we know? We know the net increase was 2,000. So throughout the year we debited this we credited this but the net increase was 2,000. That much I keep switching my balances. Prepaid is an asset 4,000 and 6,000. Okay so this is what happened to the prepaid account. Now what else do we know? We know, we know that wages and operating expenses was 216. Well what does that mean? It means at some point when we were operating the business we credited the account. We credited prepaid to 16. Why am I saying this? Because what's gonna happen is this. We're gonna assume every time you debited an expense you credited the prepaid. Why? Because you either paid for it now which is expense cash. You either paid for it now or it was already paid for because you credited the prepaid. It means the prepaid was credited in total to 16. It doesn't have to be true but we could make this assumption to get to our cash. Well if we have 4,000 we credited the prepaid to 16. Well what does that mean? Well if 4,000 minus to 16 is not 4,000 minus to 16 credited is not equal to 6,000. So we must have purchased prepaid of 218. Either we purchased prepaid or where we paid them in cash because we're converting everything to cash. It means cash paid is 218. Cash payment for operating the business for wages and operating the business is 218. Simply put all what you have to do is state your expense from the income statement which is 216 and look at your prepaid. If your prepaid went up you add to your expense. Why? Because it means you have 216 of accrual then you also acquired more prepaid. Well acquiring prepaid means you are paying for the prepaid. You are paying cash. Therefore you add the increase. It means you paid in total 218,000. Now if your accrual is 216 and your prepaid went down in value. When down in value means what does that mean? Well let's start with 216 and 216. Let's start with 4,000 and 4,000. Assuming the beginning prepaid is 4,000 the ending prepaid 4,000 and we know the wages and accrual is 216. It means you purchase 216 because 216 and 216 with cancel and 4,000 is left. Okay, I just want to make sure you're aware. You can see this. Now what happened is you have 4,000 and let's assume now prepaid is 2,000. Prepaid is 2,000. Well from accrual, from accrual you know that you credited prepaid 214. It means you only need 214,000. The cash paid why? Because 4,000 plus 214 minus 216 equal to 2,000. It means 216 minus 2,000. It means you paid in total to 14.  If your prepaid went up, you had more cash payment. So it's your expense plus your cash payment. You look at your expense. If your prepaid went down, it means you operated the business by expensing the prepaid. Expensing the prepaid means you have, you use more prepaid this year than you purchase which is it means you consumed less cash. So let's take a look at this example one more time. So what you did is you started with four and up with six.  Your expenses on the accrual basis were to 16, but you paid for an additional $2,000 in prepaid. That means your cash was more than to 16. Your cash was to 18. Your cash was to 18. Simply put you'll take your wages and other operating expenses. You increase, you add to them any increase in prepaid which is what happened in this situation. If there's any related liability, if there's any related liability, you add the decrease in related liability. So if your liabilities went down, it means you paid more. If your liabilities went up, it means you're not spending on your expenses. Because remember for expenses, you could also have a related liability. Like you, for example, for wages, you could have wages payable, but we don't have wages payable. Here we're gonna deal with liabilities. So what does the journal looks like overall? Well, here's what happened. You debited. Wages expense, 216. You can't argue with this. It's right there on your income statement, okay? Your prepaid went up by 2,000. You can't argue with that. It went from four to six. Therefore your cash equal to to 18. And this is why I said your cash is to 18. So this is what it looks like. So cash received from customers 570. Cash paid for inventory 319. Cash paid for wages. And other operating expenses, 318. So simply put, you will take your accrual. If there's any increase in the prepaid, you paid more. If there's any decrease in the prepaid, you paid less. If there's any decrease in the liability, you paid more. If there's any increase in the liabilities, you paid less, okay? Let's take a look at. So we're done with sales. Done with cost of goods sold. Done with this. We converted all of those. Now interest expense 7,000. The first thing you look at your balance sheet. If there is no interest payable or prepaid interest, you're good. We do have interest payable. It seems interest payable went from 4,000 to 3,000. Let's see if we can do this real quick. On the income statement, it shows that you have 7,000 of expenses. Your balance sheet shows that your interest payable went down. So in addition to the 7,000, it means you paid down the interest from prior period. That means you're gonna add 1,000 to your expense and you paid 8,000 for interest expenses. Let's take a look at it from a journal entry perspective. So we are looking at a liability. This is interest payable and your beginning balance was 4. Your ending balance is 3. It means overall it went down. Overall it went down. It went down by 1,000. But we know that you, from the income statement, we know that interest payable was credited 7,000. It means it was debited 8,000. Why it was debited 8,000? Because you need to go from 4 to 3. So the difference has to be a reduction of 1,000. It means cash paid for interest, cash paid equal to 8,000. Cash paid equal to 8,000. So simply put, what you do is this. You will take your expense and if you have a related liability, if the liability went down, you paid more. If the liability went up, you paid less. If the liability went up, it means you debited the expense and you credited the liability. You did not pay cash. You did not pay cash. You debited the expense and you credited the liability. So this is what it looks like, 4,000 at the beginning, 3,000 at the ending. And the interest payable went down. It means you paid. How did I know you paid? Because it went down. It means 7,000 was recorded. So let's take a look at it from a journal entry also. So basically what happened, you debited interest expense 7,000. You can't argue with this. It's right here. And you debited interest payable 1,000. How do you know this? Your payable went down by 1,000. It means your cash must have been for interest 8,000. You recorded 7,000 for this year and you paid 1,000 for prior year. So basically here's the formula. Now remember, sometimes you could have a prepaid interest. If you have the prepaid interest, you have to go a little bit further. If your prepaid interest went up, if you prepaid your interest, that's minus cash. It means you paid more. If your prepaid interest went down, it means positive to cash. It means you are using your prepaid to expense it. But usually you will not have payable and prepaid at the same time, but in case you do. Who knows? On the CPA exam, they may throw something like that at you. Now we're done with sales. We converted sales to 570. We converted cost of goods sold to 319. We converted wages and other operating expenses to 218. We just converted 7,000 of interest to 8,000 cash paid for interest. Now the next is depreciation expense. Now we need to convert depreciation expense to cash paid. And the answer is nada, nothing. Depreciation expense is a non-cash expense. Well, if it's non-cash expense, how can you convert something that's non-cash to cash? It's already non-cash. So guess what? We're done with this. So what do we need to move on to losses? Losses on plant asset. Oh, hold on a second. Losses, that's also a non-cash expense. Why? Well, if you sold the land for a loss, you're gonna debit cash, 10,000.  So if you have a piece of land for 12,000, you sold it for 10, you have a loss of two. The loss is not cash. You did not really lose any cash. The loss is an accounting number. So there's no cash, okay? That's why loss is a non-cash. And if you're not sure why non-cash, look in the description when we explain this for the indirect section. So we're done with loss. We don't have to worry about this. Same thing with gains. Gains are non-cash. Bravin, why? Well, let's go back to this land example. Let's assume I sold this land for 15,000. So I received cash of 15,000, credit land 12. Now I credit the gain 3,000. Well, this gain, I did not really receive 3,000 of cash. I received 15,000, and this 15,000 will be accounted for in the investing section. Therefore, I don't have to do anything with the gain. Gain is done. So technically what's left for me is income tax. Now let's take a look at income taxes. Income tax is showing 15,000 on the income statement. Do we have a prepaid tax? We don't. We don't have to worry about prepaid tax. We have income taxes payable, and it went up by 10,000. Wow, that's good. It means I recorded 15,000 of income tax expense. The cruel, the cruel then, but I did not pay it. How did I know I did not pay it? Because my liability, my related liability went up. So what would the T account looks like? I started with 12 on my liability and that put 22. Well, my liabilities went up by 10, okay? But I, I recorded 15,000 of income taxes payable. So I must have only paid 5,000. So simply put, you take the expense, which is 15,000, and you look at the related liability. If the liability went up, it means I paid less. How much I paid less? I paid less than 10,000 less. It means I only paid 5,000 in cash. So from it, let's look at it from a T account. From a T account, you're gonna debit income tax expense 15,000, you can't argue with this. It's right here, income tax expense of 15,000.  Income taxes payable, 10,000. You can't argue with that because your income taxes payable increased by 10,000. It went up by 10,000. Well, if that's the case, the only cash that you paid is 5,000. So you record the fifth, so simply put, let me show it to you one more time. You record that 15,000 of expenses of which 10,000 was on account and 5,000 cash. So of the 15,000, sorry, of the 15,000, of expenses, of the 15,000 of expenses, you only paid five in cash and the 10 was on account. So let's look at the formula. You'll look at your expense. If there was any decrease, decrease in income taxes payable, it's an additional outflow. If there's any increase, it's a reduction in your outflow. So simply put, and basically once we're done with income tax expense, we're done with all of them. So we kind of complete all of them. So now this is your statement of cash flows using the direct method for this income statement. So this income statement has a net income of 38,000, but what we did is we converted everything to cash and you received cash of 20,000, 20,000. That's the difference. Now, this is a summary of all the formulas that I just showed you. You have to understand these formulas. You have to understand them. Once you understand them, you are good to go. Now, this is in a comparison, the indirect method, which is in the description, and this is what we did in the indirect method using the five steps, which is 20,000, versus the direct method, also 20,000. Obviously they have to give you the same number and only the operating section uses the direct and the indirect method. So basically the direct method, it's like you are building an income statement, revenues 570 minus the expenses. Why people like it? Because it's revenues minus expenses based on a cash basis. And indirect method, on the contrary, you are starting with net income and you are adjusting it back to cash received. So I like this end product because this looks like an income statement to me. Just it's on a cash basis. That's why I like it. That's why I like it. Now, if you like this recording, talking about this recording, please like it, share it, put it in playlist. If you want additional resources, visit my website, farhatlectures.com, especially if you're studying for your CPA exam. If you're looking for those seven to 10 points or if you're looking to supplement your accounting education with additional practices and exercises and lectures, my website is the key. I cover many courses, study, stay safe during those coronavirus days and good luck.


What is up? My name is Cal. I'm one of the co organizers. We have all sorts of events just sort of freestyle forming around the lawn. We've got the brass band is about to start us up brass ball again. And then we're going to do for whoever wants to a sidewalk parade around town. We're going to flash mob that 15 second flashing lights at the bear pond intersection. So if you want to parade with us after the brass band come on up here into the corner, we're going to exit the back and then we will come back in the front side on our return.  We've got a bunch of wellness tablers over in the corner some acupuncture and all sorts of great stuff. So thank you so much for coming out. We'll keep doing announcements. And happy pride. We are LaVangela. We're so stoked to be sharing space with you and siblings in the queer community in the BIPOC community in the sex worker community who aren't here with us anymore. It's really, really important to source our grief and our joy and our rage when we make spaces in events like pride. I'm going to put two names out there who I'm remembering today. I remember Fern and I remember my friend Jade. And this song is called Give Up the Ghost. On the docket, she talks to an extra representative.  A erotic labor, which is a legitimate form of labor and an industry in which trans people are disproportionately targeted for incarceration and death. Sex workers work, y'all, happy pride. And then we have Marie Hamilton harping. We have Toussaint Negretude giving us some poetry. And we have the Mount Ape Acapella Sweet Transition Group coming at four. So many amazing sponsors, including Fox Market and Red Hand, Mosaic, the ACLU. The city has really turned out and supported this fast. So we're psyched to keep doing this. We love this. Give you guys some poetry on this beautiful day. Rain is stopping. The sun is coming back out. And you know there's a rainbow. What I'm going to do is call it all. I'm so sorry. I know you love to your chagrin. My humanity is just much too much for even you to escape.  My bath keeps shining with every last look you take. I'm so sorry. I know you love but much to your chagrin. My humanity is just much too much for even you to withstand. I know you love to detest my face, but much to your own wretchedly vile beauty. Just keep shining with every last look. Step aside, little world. I'm about to light this goodness from here to outer space. Gold don't spoil. Just remember that you have gold. All of us. We're all hundreds of thousands of years. It's completely untarnished. Completely shiny and gold. So remember that gold don't spoil for nobody. Another one. And now that I've taken my shirt off to all that good music, the mosquitoes are all over me. So I'm going to do a poem here that was published in the Times Argus last September. It's called Through the Wilderness. Through the wilderness. Through the wilderness of my freedom, through territories uncharted for corporate consumption, through cogent dreams and cosmic streams. I, to find my star house, high amongst the peaks of an ever emancipating consciousness. Through these constellations, strewn within my soul, here to find my sanctuary, housing. All the juju, this new through these clouded, I'm sorry, through days clouded in the valleys of self deceit. Through the darkest immobility of shackling bigotry. Through hours journey by prayer and by hand and by feet. Through hell dangling inequities for the hungriest to eat. Through powers stronger than all the calls for my defeat. I have climbed to find my star house, high amongst the peaks of my own. Through declarations flowing from the sovereignty of peace. Through the clear and present affirmation that the universe is in a to reach through this connectivity of all my soul through the envisioning of a sanctuary deep within my truth. I have climbed to find my star house, high of a bright and fertile liberty for innermost use. The excitement you get, you mean that fine person? This is called for the yeses. Effervescent lessons of pleasures, treasured essence, measured blessings of incandescent vexes, pulsing guesses, transcendent ledges of joy. Dancing upon the nexus, glancing upon the majestic of a wilderness, green for the yeses, heart wise hexes dancing upon the nexus. Sexy love poem, to be nobody's fool, but what you got has got me flying with no shoes. I've lost all rules and dropped out of school. You got me freeing the blues. You got me freeing the blues. And I ain't about to let this good thing loose, our dear friend Fernfeather. Can I just hear a shout out of love? I know, I know they're so happy to be here with us. This poem is called a wintry observance of love. Slain heroes don't quite whisper, like cedar trees in the far northern. Slain heroes don't quite anesthetize these icy inequities still dangling from our dreams. Slain heroes never quite warm to the cooperative shiverings of complicity. Slain heroes howl, loud and fear. Slain heroes of don't quite disappear. Here's a poem I wrote just the other day, hot and swampy and threatened to rain, but they just hung over like forever. And it was 900% humidity. And I was like laying in my sweat, waking up at like 3 in the morning, 5 in the morning, and suddenly this poem hit me. And this poem is called It's Stag Season. It's stag season, which is no euphemism for sexy singles. Stag, short for stag nation season, is that swarmiest time during the summer when impending rainstorms loom at their heaviest threat. Promising an Amazonian deluge fit for atmospheric change. Yet until such expecting occurrence, stag season can hang leveraging a stillness of abject humidity, an abominable hesitancy, rendering an eternity of sweat maddening hours. Of no scene, it's just stag season. Till the good clouds, another recent poem, I think the poem will speak for itself. This is called This Silent Scramble. Meeting your white friends' parents is always a cultural endeavor, especially when your white friends insist on being more clueless than their parents. It becomes such a silent scramble to then pirouette between flying daggers and trenching rounds of automatic denials. While blackening, blackening, blackening for my life, I'm guessing who's not coming for dinner. Never to be seen again. You have met your white friends' parents. So this next one is called The Othering. In the human context, to be misspeachied is to be identified as being of some perceived species, which is thought to be less than what is known as the human species. In any given interaction with what I know to be a misspeachied, every time I step within view, perhaps this happens to you too. When humanity fails to see its own hue. The first move to Vermont, after I got settled into my apartment, it was a nice day in spring and I decided to just walk around the neighborhood and check things out. And I ran into this guy that was mowing his lawn and was friendly.  And he said, you know what I mean? And so that's what I realized. There are people that actually misspeachies people. Go figure. This next poem, definitely a reflection of our latest round of massacres, shootings. It's just a short piece called Systemic Reasoning. A system that allows for murder is not a system that allows for safety. That's it. Short little piece there. Thank you everyone for staying out in the rain. I love this. I love saying badminton played in the rain. We don't stop, okay? Right. Happy Pride. This piece is called Blues Jean-Michel Basquiat. And right now there's an amazing new exhibition of Jean-Michel Basquiat's work in Manhattan in the gallery there. And Basquiat was a contemporary of mine and an idol of mine when I was in my 20s and I still love them. And his poem was inspired by his work. I love the way that just automatically just dropped down. Okay, so it's called Blues Jean-Michel Basquiat.  And two of his captors, this is a piece I wrote in 1995. That was about 400 years ago. Inspired by just the history of the African diaspora. It's called Elysian Time Bump. And repertoire of B-flat and conjure. Bumpin, snake-fingered temples into calisthenic wah-wahs. Bumpin, emancipated jelly rolls of clarinet and grandeur. Bumpin, bumpin, bumpin, high-casting neck-bone elations, neck-bone elations. Bumpin, making Elysian spells out of old vocations. Bumpin, bumpin, bumpin, opening windows onto haywire clashing voices. Bumpin, clashing voices, bumpin, clashing voices with the stomping of some heavy storm. Bumpin, bumpin, walking into birdland. Bumpin, walking into birdland in the key of Congo Square. Feel-a-mighty-five, feel-a-mighty-five, bumpin, feel-a-mighty-five, feel-a-mighty-five, feel-a-mighty-five, bumpin. S-no-phonic, S-no-phonic, S-no-phonic. Walking Joplin, walking Joplin, walking Joplin to the freedom sign. Bumpin. This is a poem under my Vermont tribute to Billy Holiday's classic Strange Fruit. And I wrote this last September as I was hearing the oncoming machine guns preparing for hunting season. Machine guns. I love this time in Vermont when the gunfire sounds like Philadelphia, or Oakland, or Chicago, or wherever the police steadily serve and protect. Players alike can join arms in full triggering fervor. Starts to bleed across the maples. Amid the strange cold, prepare their rightful journey south. I love this time in Vermont such a lovely autumnal affair. The poem I'm gonna do that I wrote for my mother who recently recovered from kidney failure, but she's doing really well right now and I wrote this poem for her Mother's Day 2020. And it's called Just Mind from a Bowl of Access.  With the taste of sweet potato pie and a generous amount of divine seasoning, my mother has sweetened the courage every step I take forward. Mom can nourish the consciousness of the entire table from just makes the world so much more livable. Knowing full quarantine of miles can ever tell. I love my mother. With first hit and everything was locking down, I was so excited. I was like this is it. We're finally seeing the great shutdown, the great collapse. At the time I was an unemployed and I suddenly didn't have to feel guilty about it. I could go spend all day in the woods or at home. I loved it. And it inspired this poem. Regardless of whom or whatsoever. I'm done with the system. With the system. Want to work for it, nor with it. Nor towards its fabled salvage. I'm done. I'm done. Please note my resignation effective immediately. The system has bound and slowed and measurably penalized every step I've known since birth. As can attest all births prior to my own. All progressions achieved thus far and or forwardly are exclusively the fugitive results of life beyond the grasp of such ill-handed fuckery. I'm done. I am done. I'm done with the system. And regardless of whom or whatsoever sanctions otherwise. Without need nor want of said regard. I'm done with the system. Please note my resignation effective immediately. I'm going to do just a couple more here. And then we're going to have me just going to give us some more beautiful music. And it's just going to be wonderful. Okay. This is an old favorite poem of mine that some of you might have heard me do before but from 2013. But I love it. It keeps being important. It's called All Green Lights. And you know how when you're driving down a long stretch and every intersection you get to it's just one green light after another. All green lights. You can't stop a mountain from standing on your toes. You can't stop the sunrise from Manhattan or Rome. You can't stop the revolution from ringing like bells. And you can't stop me from being myself. You can't stop this message from blooming in the hills. You can't stop this harvest from feeding, feeding who it will. You can't stop this feeling from going below the belt. And you can't stop me from being myself. Not you. Not your courts. Not your rule. Not your hatred. Not your history. Not your schemes. Not your deception. Not your collusion. Not your collusion. Not your lies. Not your life. Stop this mountain from seeing the storms. You can't stop this sunrise. You can't stop this revolution. This revolution right here from ringing. And you can't stop me from being myself. Thank you.  Two great points. Both died of AIDS some years ago. A great opportunity to get to know them and to share poetry with them. If you ever have a chance to see that Marlon Riggs was in addition to a poet, he was a great documentarian, a filmmaker. And he has a great film called Tons Untied, which I definitely recommend.  And so this poem is called Brothers and Brothers. Oh, I love this one. Yes!  Brothers and brothers holding the one love that cannot be shut asunder.  Thank you. So for the mic, I again want to wish happy pride to all of us, especially want to wish happy pride to those of us who aren't amongst us. Those of us who might be on the other side of those hills over there, who might be in home since I was 19. That was about three years before Moses, even though I'm quite young still now, but coming out. I first learned about outness as an African American, to try to hide my blackness, because I am black. It was a joke on me to try to fit in, to try to talk what lunacy is supposed to mean.  Being out is our best defense. Being out is what scares the hatred, shitless. Being out is what protects us. Being out is what creates this. Okay? So happy pride, and let's continue this for the rest of our lives. Thank you. Happy pride. And the notch building is Kell within range of my voice. There's Kell. Can we all just take a moment to give Kell a round of applause for organizing all of this? We also want to thank Elaine for spearheading this. Where's Elaine? Okay. Thank you, Elaine. Coming through the speakers of the harp, or is it very quiet? Beautiful outer variation in day. A pad of cute bits of rain, some sun. I'm waiting for the snow. Maybe my harp will bring the snow. First of all, my name's Marie Hamilton. My pronouns are she, her. And I just wanted to say I am beyond honored to be here playing my hometown's first pride festival. I honestly can't believe it's the first one. Is it just me? But what? But we're here right now. So we came out publicly two years ago. So it's still new for me to be out. And it's amazing. But it was really hard. It was really hard. It was a little bit of wind. I wonder if I should back up. Is it still okay despite the wind? I went to Catholic school for a few years growing up. And I grew up in a very Irish Catholic family.  Bisexual, I identify as bisexual, pansexual. Anything that just means gender isn't a barrier for physical and romantic attraction. I love people. But being bisexual, being in a straight passing relationship, being cisgender, there's a lot of privilege in that. But there's also a very specific way of experiencing being queer. The same privilege that I have to move through the world is what kept me from coming out. And sometimes it's hard because biphobia is still very much a thing in queer circles. And internalized biphobia is very much a thing. It's hard when you just don't feel like you're enough, you have that imposter syndrome. But I'm so lucky to be surrounded by beautiful people in my community and in my friend groups who have made me feel so welcome. And I hope anyone who's here who feels like they're not welcome here, like they don't belong here, can find one day that feeling because you are welcome here. Everyone's welcome. Anyhow, I'm going to start with a song by a Canadian musician named Ray Spoon. I don't know if anyone here knows Ray Spoon. Does anyone know Ray Spoon? You are now going to know Ray Spoon. They are a non-binary musician from Canada. They've been dealing with cancer for many years now and have been an incredible advocate for moving through the medical system as a non-binary person, which is not easy. And I highly suggest you check out their music. They're amazing. I learned this song this morning on my drive down here, so I'm feeling very vulnerable sharing it. But if it explodes, you'll know why. Also, this is so fun. What a fun time seeing all the young people. If some of you just arrived earlier, there was a dance party here. They were doing the macarena. It's so fun. Like, I wish we had this when I was in high school here in Montpelier. It would have helped me figure out a few more things a little earlier. Me too. But how great. How great we are here. Yeah, the next song is actually another song by a friend of a friend named Dina Volmer. Dina is an amazing journalist, musician, writer. She was in a band called the Pizza Underground, which, as you may guess, was a pizza-themed velvet underground tribute band. We have Macaulay Culkin. Anyhow, it's a beautiful, beautiful song. It moved me so much the first time I heard it, and it moves me so much, you know, today. And I'll tell you a little bit about the context in which I finally learned this song. I just want to give you a little heads up that I'm going to talk a little bit about transphobia in the medical system. So if that's sensitive, I just want you to take care of yourself. I'm going to move back one second. This wind is a bit much. That'll do anything for it. But yeah, I just wanted to give that little heads up that I'm going to talk about that.  Oh, sorry. In the world. And they had a heart bigger than their body. They would make these little hearts out of just like paper and collages and go to the metro. In Montreal, they would go to the metro and give them out to people on Valentine's Day, especially people who looked lonely. And they just, they were the best. And I'm certain you all would have loved them. A few years ago, Hayden finally got a cancer diagnosis. But it was after years and years of them going to their doctor and insisting that something wasn't right with them. Knowing, knowing in their body. And they weren't believed. They were told time and time again that it was anxiety. It was anxiety. Anxiety. That's all it is. It's nothing. Just anxiety. And then when they finally found out what it was, which was breast cancer, not anxiety, it was too late. And I know in my heart, I know in my being that if they had believed them when they first started having those concerns that they'd still be here today. And I'm certain that the doctor saw my friend Hayden and their trans identity as a symptom of mental illness. And I mean, that's a side point, but the way we treat mental illness, just anxiety, just mental illness is totally wrong. Like mental illness really is an important thing to consider.  Like I'm certain that's what the doctor was thinking as they shrugged off their concerns. And of course, you know, I brought them to a lot of their medical appointments and they're constantly dead named. They're constantly misgendered. And when you're dying, when you're navigating something as awful as breast cancer, you shouldn't have to deal with that. No one should have to deal with that ever, ever, but especially in a moment like that. So when Hayden passed, I was there and it was the first time that I was in the room with someone while they left their body. There's something about death that brings you very close to life. I don't know if people here have experienced that, but I just actually played in a palliative care center yesterday for another friend who's on the edge of losing their life to cancer. And so I'm like very actively right now in that space of just being very alive and very close to life. And Hayden's death, it just makes all the things that don't matter just fall away. And what's pure and true about just existing just comes to the forefront. And this song over the course of the weeks in the wake of Hayden's passing, I learned it because I knew they would have loved it. It's totally their style of music, but the words of you'll hear came to be a form of medicine for me. And yeah, you'll see why. But I just wanted to dedicate this song to Hayden, Hayden Mueller, who's shining there up in the sky. I also want to dedicate this to Fern Feather, who I also knew. I'm sorry, I'm talking so much, but one last story. I have so many beautiful memories of Fern. Like even here, I remember one time I was in the State House lawn, this happened many times. But I like heard Murray Murray and I turn and Fern had like stopped her car in the middle of State Street. Got out, left the door open, like just in the middle of the street runs up to me and it's like look at this like beautiful stone. Can you see the universe in it? It's so beautiful. I gave it to me, kissed me on the cheek and then was gone. Yeah, so sending love to both of them in this song is dedicated to them and dedicated to any of your loved ones who left too early. It's just the end of the day and when the sun went down to go and I groaned. But it's a perfect year. My friend said, nah, it's time to go and it seems strangely like a safely thing to say. So we walked back to my house to listen to the Grateful Dead. He had never heard because they were for white people he said understood why the Grateful Dead are actually good. And I like hippie jamb and music from the time that I was 12 because I thought have a name as I became a fan. The words lost their meaning. Look at the harp in the wind. That's magical. I'm just going to let that go for a second. So we walked back to my house to listen to the Grateful Dead. On that day he understood why the Grateful Dead are actually good and I like hippie jamb and music from the time that I was 12. But it was years before I heard the dead because I thought they were to have a name like that. But as I became a fan the words lost their meaning and the dead be grateful. But I don't like the name summer in the middle of the night. And as I walked to the beach the guard dogs hurled their bodies at the chain link fences. Our hands slipped for the sand and at the time we think there will always be new memories to make. Now I transpose later ones on top by mistake. I walk in the orange street. It's mischievous as a gag. I'm zooming out. I'm standing at the pier. Water is hundreds of giant stone bodies. They are swimming and they are the water. They are swimming and they are the water. They are swimming and they are swimming and they are the water. They are swimming and they are the water. And my English teacher once told me about sex and death only. And I used it my greatest looser to the truth. My death's mysterious shroud at the forefront of my thinking. With love just to shield you for takedowns. On achilles of music, literature and art. It's about getting closer. So much closer to the truth. And each day I felt it just a little less, feeling as I mourn. It was time to get back an engine in the city again. I want to capture that open feeling. Give it out to anyone feeling though I consume music and art. It brings me closer to the water and it's dripping and dripping. From the waters hundreds of giant stone bodies. They are swimming and they are the water. They are swimming and they are the water. They are swimming and they are the water. They are swimming and they are the water. Sing with me, ready? They are swimming and they are the water. You got it? Thumbs up if you got it.  Okay, one, two, three, four. It's time for more people to play and for me to stop playing. But my name is Marie Hamilton. I like my music. I'm on Instagram, Marie Hamilton Music. I'm also very nice, believe it or not. So if you want to say hi, come say hi. I don't bite unless there's consent. If I had to make the most like bleh. But thank you so much for holding some space for me today. Her locals coming back to roost. Marie's incredible. They live part-time in Mahori all, but sometimes they're down here in Vermont still. So we're going to flip the sound and we have a closing group.  And there are other happenings for people that want to go to bars from four to eight. There's a charlie's queer takeover. There's a Fox Market dance party tonight. Tomorrow there's a ton of events. There's an all day film fast at the Savoy. There's shakes queer in the park and Hubbard. And there's also a four o'clock Bar Hill closing party tomorrow. And then on Tuesday night, the Savoy is going to do another evening queer film. So awesome happenings. We're definitely going to do more LGBTQ plus stuff in Montpelier. So I'm going to transition the sound for them. Thanks so much for coming out. Transition we are a high school acapella group at Mount Abraham Union High School in Bristol, Vermont. Backing up here. And we're going to sing a few songs for you today. So I hope you enjoy. Sorry about that, guys. We are now ready. Yay. We have a song called Burton Holler and our soloist will be Bella and Elena and by Harry Styles and I will be doing. We just wanted to take a moment to introduce ourselves and ask any of you out there listening a quick favor. So again, we are sweet transition high school acapella group and right now we're in the midst of a competition that is being held by do good fest, which will take place here on July 16th and that competition is called beats for good. And right now we're one of like the top 10 selected finalists and we're in the voting. Thank you. So there's 10 groups and whichever one gets the most votes gets to perform at this do good festival and open for ex ambassadors. So if you could go to do good fest.com and vote for sweet transition, that would be much appreciated. We also have a QR code right up here if you feel inclined to come near us. Ashley, we just want to thank our friends at the Pride Center for inviting us and giving us this great opportunity. And so yeah, we have one more song for you all. It's called colors by the Black Pumas and our soloist will be Bella. Thank you so much. Transition and everybody for Montpelier Pride. Have a great rest of your day. Thank you.