1. show excel formulas

1. show excel formulas

complete the statement of cash flow(indirect method) shown below by using the formulas that reference data from the income statement and balance sheet (found by clicking the tabs at the bottom of this worksheet)

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E 1 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow 2 and complete the statement of cash flows. 3 4 INNOVATION ELECTRONICS, INC. 5 Income Statement 6 For the Year Ended December 31, 20X2 7 Net sales $ 2,430,000 8 Gain on sale of land 6,500 9 10 Total revenues 2,436,500 11 12 Expenses: 13 Cost of goods sold $ 1,565,000 14 Operating expenses 598,000 15 Depreciation expense 16,000 16 Interest expense 17,000 17 Income tax expense 63,000 18 19 Total expenses 2,259,000 20 $ 21 Net income 177,500 22 23 20X1 INNOVATION ELECTRONICS, INC. Balance Sheet Al December 31 20X2 Assets Current assets: Cash $ 184,420 Accounts receivable 68.700 Inventory 134,500 Prepaid insurance 2.980 Long-term assets: Investments 211.000 Land 208,500 Equipment 203.000 Accumulated depreciation (17,500) 25,740 83,000 128,000 4,560 120,000 255.000 203,000 (101,500) Total assets $ 895.600 717,800 26.500 $ 3,400 30,200 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders equily: Common stock Retained earnings 81,000 2.300 32,500 255.000 242,000 273.000 207.500 230,000 130.000 Total liabilities and stockholders' equity 895,600 $ 717,800 Additional Information for 20X2: 1. Assume that all increases and decreases in long term assets, long term liabilities, and common stock are a result of cash transactions 2. Land costing 546,500 was sold, resulting in a gain of $6,500. No other long-term assets were sold. 3. Additional long-term investments were purchased. 4. An additional long-term note payable was signed. No repayments on notes were made 5. Additional common stock was issued. INNOVATION ELECTRONICS, INC. Statement of Cash Flows For the Year Ended December 31, 20X2 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Gain (on sale of land) Changes in current assets and current liabilities: Accounts receivable Inventory Prepaid insurance Accounts payable Interest payable Income tax payable Net cash provided by used in) operating activities Cash Flows from Investing Activities: Purchase investments Sale of land Net cash provided by (used in) investing activities Cash Flows from Financing Activities: Issue common stock Issue long term note Net cash provided by (used in) financing activities Net increase (decrease) in cash Cash at beginning of the period Cash at end of the period