1 The Statement of Cash Flows 2 Using Excel to prepare the statement of cash flows, indirect method 4 5 The James Island Clothing Company began operations on July 1, 2018. The adjusted trial balance as of December 31, 2018, appears below, along with transaction data for 2018. JAMES ISLAND CLOTHING COMPANY Adjusted Trial Balance 12/31/18 Account Title Cash Accounts Receivable Inventory Office Equipment Truck Accumulated Depreciation-Plant Assets Accounts Payable Note Payable-Short Term Note Payable-Long Term Common Stock Retained Earnings Dividends Sales Revenue Cost of Goods Sold Rent Expense Advertising Expense Depreciation Expense Balance Debit Credit 95,700 12,000 4,400 26,000 18,000 6,000 5,500 10,000 33,000 100,000 1,000 15,000 3,600 2,000 800 6,000 169,500 $ $ 169,500 36 37 Transaction data for 2018 Cash paid for purchase of office equipment $ 6,000 Cash paid for purchase of truck 5,000 Acquisition of plant assets with a long-term notes payable 33,000 Cash payment of dividends 1,000 38 Cash receipt from issuance of common stock 100,000 39 Use the blue shaded areas on the ENTER-ANSWERS tab for inputs. 40 ALWAYS use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrou 41 cash outflows or amounts to be subtracted. 42 43 Requirements: Complete the worksheet for the James Island Clothing Company, filling in the transaction analysis columns. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) Note: Some of the input cells marked in blue may not require entries. Leave the input cells blank that do not require an entry. Spreadsheet for Statement of Cash Flows Balance Balance 12/31/18 Panel A-Balance Sheet 7/1/18 | Transaction Analysis Debit Credit $ 0 Cash Accounts Receivable Inventory Office Equipment Truck Accumulated Depreciation-Plant Assets Total Assets Accounts Payable Note Payable-Short Term Note Payable - Long Term Total Liabilities o Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Panel B-Statement of Cash Flows Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Expense - Plant Assets Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Increase in Notes Payable-Short-term Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Cash Paid for Acquisition of Plant Assets Net Cash Used for Investing Activities Cash Flows from Financing Activities: Cash Receipt from Issuance of Common Stock Cash Payment of Dividends Net Cash Provided by Financing Activities Net Increase (Decrease) in Cash: Total HINTS C11:E26 Use cell references to appropriate values on Instructions and ENTERASWERS1 worksheets for calculations E16 Note that accumulated depreciation of plant assets should be a negative value for total assets calculation. c17:017, 022:D22 Do not calculate total assets and liabilities for debit and credit columns. Leave these cells blank. C26:026 Use the function SUM() to calculate total debit and credit transactions. C30:043 Use an equal sign (=) and the appropriate cells from the spreadsheet for statement of cash flows. Place cash outflows in column C and cash inflows in column D. C32 Depreciation Expense should be entered as a positive value in this cell. D39 Use cell references to the Transaction Data table in Instructions worksheet to calculate cash paid for acquisition of plant assets. C45:045 Calculate the net change in cash using values in Panel B. If there is a decrease in cash, enter it as a negative value in column C. If there is an increase in cash, enter it as a positive value in column D. Prepare the James Island Clothing Company statement of cash flows for the year months ended December 31, 2018. Use the indirect method. Format cash flows from operating activities by the indirect method. Leave cells blank if not used. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) Note: Some of the input cells marked in blue may not require entries. HINTS 1. For cell references, use an equal sign () and the appropriate cells from the Panel B-Statement of Cash Flows in ENTERANSWERS1 worksheet. 2. In Cash Flows from Operating Activities through Cash Flows from Financing Activities sections, enter the amounts in the order of Panel B - Statement of Cash Flows in ENTERANSWERS1 worksheet. 3. Use a minus sign in front of the formula to enter appropriate amounts as negative values. 4. Use appropriate cells in ENTERANSWERS2 worksheet to calculate totals and subtotals. 5. Refer to the appropriate cell in Spreadsheet for Statement of Cash Flows in ENTERANSWERS1 worksheet for the cash balance on July 1, 2018