Mizukawa Company provided the following information for the years 20X1 and 20X2:

Required:

1. Calculate the change in cash flows that serves as the control figure for the statement of cash flows.

2. Prepare a schedule that provides operating cash flows for the year 20X2 using the indirect method.

3. Ignore Requirement 2. Now assume that you have all the information provided for Mizukawa except that you only know the beginning balance of accounts receivable for 20X2. Given this information and assuming that the operating cash flows for 20X2 are $61,500, calculate the ending balance for accounts receivable.

4. In an Excel spreadsheet, input the balance sheet and income data for 20X1 and 20X2, using Column R for 20X1 and Column T for 20X2. For balance sheet items beginning with cash, use Rows 4 through 12 (exclude totals); for income statement data, beginning with sales, use only Column T and Rows 13 through 17 (exclude gross margin).

a. Now using Column K, beginning with Row 8, prepare a set of Excel equations and calculate operating cash flows for 20X2 using the indirect method, drawing on the data found in Columns R and T. For example, beginning with Net income, the first equation found in cell K8 would be “=T17” and the associated value in that cell would be $60,000.
b. Review the data analytic types found in Exhibit 2.2. Which data analytic type is used for Requirement 4a? Explain.

Transcribed Image Text:

Mizukawa Company Income Statement For the Year Ended December Sales Cost of goods sold Gross margin Operating expenses Depreciation Other Net income 31, 20X2 $112,500 30,000 $ 82,500 3,000 19,500 $ 60,000