Using the following information, complete an indirect method SCF in good form. The SCF should be presented in the worksheet labeled "Statement of Cash Flows".This homework is worth a total of $10$ possible points $--8$ for the SCF and $2$ for appropriate use of Excel $($i$.$e$.,$ no amounts hard coded, use of formulas where possible and proper formatting$)$ within the SCF$.$ Tips:$1)$ Follow the steps provided in class to create the SCF$.$ $2)$ Record the journal entry for the sale of equipment to determine the cash effect of this transaction$3)$ If ending cash on the SCF doesn't equal ending cash per the Balance Sheet, you've made a mistake somewhere. To find the error, recheck your work once, then redo the problem if you can't find your error. Hernandez Corp Statement of Cash Flows For the year ended, December $31,2025$  Hernandez Corp Balance Sheet and Income Statement Data Cash Flow from operating activites $0$ $12/31/202512/31/2024$  Net income $23,600$ Current Assets:Cash $36007100$  adjustments to reconcile net income to cash flow from operating activities $0$ Accounts Receivable $6150051000$  Deprecation expense $10,400$ Inventory $4480063900$  Lose on sale of equipment $1,400$ Total Current Assets $109900122000$ PPE $165200129900$  Changes in working capital $-8,600$ Accumulated Depreciation $(35200)(24800)$  Increase in accounts receviable $10,500$ Land $7060067\mathrm{7<br> }00$  Decrease in inventory $19,100$ Total Assets $310500294800$  Increase in accounts payable $-36,400$  Decrease in wages payable $100$ Current Liabilities: Cash Flow from operating activities $36,500$ Accounts Payable $4780039800$ Wages Payable $100009900$  Cash Flow from investing activites $20,100$ LT Notes Payable $6810078800$  Sale of Equipment $18,700$ Total Liabilities $125900128500$  Cash Flow from Investing activities $18,700$  Cash Flow from financing activities $18,700$ Stockholders' Equity: Dividens paid $-54,600$ Common Stock $130000130000$ Retained Earnings $5460036300$  Cash Flow from financing activiteis $18,700$ Total Stockholders' Equity $184600166300$  Net cash flow increase $($decrease$)40,300$ Total Liabilities & Stockholders' Equity $310500294800$  Ending Cash Balance $40,300$ Sales Revenue $338150$ Less Cost of Goods Sold $175200$ Gross Profit $162950$ Operating Expenses $(119400)$ Operating Income $43050$ Interest Expense $(11300)$ Loss on Sale of Equipment $(1400)$ Income Before Taxes $30350$ Less Income Tax Expense $6750$ Net Income $23600$ Additional Information:$1)$ The company sold equipment that had an original cost of $$20,100$  Amount equipment was depreciated at sale $60\%$ $2)$ There have been no sales of land during the year.$3)$ Depreciation expense is included in operating expenses.$4)$ There have been no additional borrowings under the long term note payable.$5)$ There has been no repurchase of treasury stock.$6)$ Dividends were declared and paid during $2025$

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A1 B A Name c b E F G H Excel Homework #3 Winter 2024 J L M N P a R 5 T U V x Y 2 AB AC AD AE Using the following information, complete an indirect method SCF in good form. The SCF should be presented in the worksheet labeled "Statement of Cash Flows". This homework is worth a total of 10 possible points-8 for the SCF and 2 for appropriate use of Excel (i.e., no amounts hard coded, use of formulas where possible and proper formatting) within the SCF Tips: 10 1) Follow the steps provided in class to create the SCF 11 12 2) Record the journal entry for the sale of equipment to determine the cash effect of this transaction 3) If ending cash on the SCF doesn't equal ending cash per the Balance Sheet, you've made a mistake somewhere. To find the error, recheck your work once, then redo the problem if you can't find your error. 13 14 15 Hernandez Corp 16 Balance Sheet and Income Statement Data 17 18 12/31/2025 12/31/2024 19 Current Assets: Cash 3600 7100 21 Accounts Receivable 61500 51000 22 Inventory 44800 63900 Total Current Assets 109900 122000 PPE 165200 129900 Accumulated Depreciation (35200) (24800) 26 Land 70600 67700 27 Total Assets 310500 294800 28 25 Current Liabilities: 30 Accounts Payable 47800 39800 31 Wages Payable 10000 9900 32 LT Notes Payable 68100 78800 33 Total Liabilities 125900 128500 34 35 Stockholders' Equity Common Stock 130000 130000 37 Retained Earnings 54600 36300 38 Total Stockholders' Equity 184600 166300 Total Liabilities & Stockholders' Equity 310500 294800 41 Sales Revenue 338150 Less Cost of Goods Sold 175200 43 Gross Profit 162950 Operating Expenses (119400) 45 Operating income 43050 46 Interest Expense (11300) Loss on Sale of Equipment (1400) 48 Income Before Taxes 30350 Less Income Tax Expense 6750 50 Net Income 23600 51 Additional Information: 53 54 1) The company sold equipment that had an original cost of $20,100 Amount equipment was depreciated at sale 60% 2) There have been no sales of land during the year, 50 3) Depreciation expense is included in operating expenses. 57 4) There have been no additional borrowings under the long term note payable 58 5) There has been no repurchase of treasury stock. 59 6) Dividends were declared and paid during 2025 00 + = SCF Worksheet Statement_of_Cash Flows Hernandez Corp Statement of Cash Flows For the year ended, December 31, 2025 Cash Flow from operating activites Net income 23,600 adjustments to reconcile net income to cash flow from operating activities Deprecation expense 10,400 Lose on sale of equipment 1,400 Changes in working capital -8,600 Increase in accounts receviable Decrease in inventory 10,500 19,100 Increase in accounts payable -36,400 Decrease in wages payable 100 Cash Flow from operating activities 36,500 Cash Flow from investing activites 20,100 Sale of Equipment 18,700 Cash Flow from investing activities 18,700 Cash Flow from financing activities Dividens paid 18,700 -54,600 Cash Flow from financing activiteis 18,700 Net cash flow increase (decrease) Ending Cash Balance 40,300 40,300 A1 B A Name c b E F G H Excel Homework #3 Winter 2024 J L M N P a R 5 T U V x Y 2 AB AC AD AE Using the following information, complete an indirect method SCF in good form. The SCF should be presented in the worksheet labeled "Statement of Cash Flows". This homework is worth a total of 10 possible points-8 for the SCF and 2 for appropriate use of Excel (i.e., no amounts hard coded, use of formulas where possible and proper formatting) within the SCF Tips: 10 1) Follow the steps provided in class to create the SCF 11 12 2) Record the journal entry for the sale of equipment to determine the cash effect of this transaction 3) If ending cash on the SCF doesn't equal ending cash per the Balance Sheet, you've made a mistake somewhere. To find the error, recheck your work once, then redo the problem if you can't find your error. 13 14 15 Hernandez Corp 16 Balance Sheet and Income Statement Data 17 18 12/31/2025 12/31/2024 19 Current Assets: Cash 3600 7100 21 Accounts Receivable 61500 51000 22 Inventory 44800 63900 Total Current Assets 109900 122000 PPE 165200 129900 Accumulated Depreciation (35200) (24800) 26 Land 70600 67700 27 Total Assets 310500 294800 28 25 Current Liabilities: 30 Accounts Payable 47800 39800 31 Wages Payable 10000 9900 32 LT Notes Payable 68100 78800 33 Total Liabilities 125900 128500 34 35 Stockholders' Equity Common Stock 130000 130000 37 Retained Earnings 54600 36300 38 Total Stockholders' Equity 184600 166300 Total Liabilities & Stockholders' Equity 310500 294800 41 Sales Revenue 338150 Less Cost of Goods Sold 175200 43 Gross Profit 162950 Operating Expenses (119400) 45 Operating income 43050 46 Interest Expense (11300) Loss on Sale of Equipment (1400) 48 Income Before Taxes 30350 Less Income Tax Expense 6750 50 Net Income 23600 51 Additional Information: 53 54 1) The company sold equipment that had an original cost of $20,100 Amount equipment was depreciated at sale 60% 2) There have been no sales of land during the year, 50 3) Depreciation expense is included in operating expenses. 57 4) There have been no additional borrowings under the long term note payable 58 5) There has been no repurchase of treasury stock. 59 6) Dividends were declared and paid during 2025 00 + = SCF Worksheet Statement_of_Cash Flows Hernandez Corp Statement of Cash Flows For the year ended, December 31, 2025 Cash Flow from operating activites Net income 23,600 adjustments to reconcile net income to cash flow from operating activities Deprecation expense 10,400 Lose on sale of equipment 1,400 Changes in working capital -8,600 Increase in accounts receviable Decrease in inventory 10,500 19,100 Increase in accounts payable -36,400 Decrease in wages payable 100 Cash Flow from operating activities 36,500 Cash Flow from investing activites 20,100 Sale of Equipment 18,700 Cash Flow from investing activities 18,700 Cash Flow from financing activities Dividens paid 18,700 -54,600 Cash Flow from financing activiteis 18,700 Net cash flow increase (decrease) Ending Cash Balance 40,300 40,300

Answer rating: 100% (QA)

To complete the Statement of Cash Flows SCF using the indirect method we need to follow these steps 1 Start with net income from the income statement ... View the full answer