16-4BA Indirect: Cash flows spreadsheet P4 Refer to the information reported about Gazelle Corporation in Problem 16-3B. Required Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 16A.1 using the indirect method. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events. a. Net income was $158,100. b. Accounts receivable decreased. c. Inventory decreased. d. Prepaid expenses decreased. e. Accounts payable decreased. f. Depreciation expense was $38,600. g. Sold equipment costing $51,000, with accumulated depreciation of $22,850, for $26,050 cash. This yielded a loss of $2,100. h. Purchased equipment costing $113,250 by paying $43,250 cash and (i.) by signing a long-term notes payable for the balance. j. Paid $42,500 cash to reduce the long-term notes payable. k. Issued 3,000 shares of common stock for $15 cash per share. 1. Declared and paid cash dividends of $53,600. GAZELLE CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash Accounts receivable $123,450 $ 61,550 77,100 80,750 Inventory 240,600 250,700 Prepaid expenses 15,100 17,000 Total current assets 456,250 410,000 Equipment 262,250 200,000 Accum. depreciation-Equipment (110,750) (95,000) Total assets $607,750 $515,000 Liabilities and Equity Accounts payable long-term notes payable Total liabilities $ 17,750 $102,000 115,000 87,500 132,750 189,500 Equity Common stock, $5 par 215,000 200,000 Paid-in capital in excess of par, common stock 30,000 0 Retained earnings 230,000 125,500 Total liabilities and equity $607,750 $515,000 GAZELLE CORPORATION Income Statement For Current Year Ended December 31 Sales $1,185,000 Cost of goods sold 595,000 Gross profit 590,000 Operating expenses (excluding depreciation) 362,850 Depreciation expense 38,600 188,550 Other gains (losses) Loss on sale of equipment (2,100) 186,450 Income before taxes Income taxes expense Net income 28,350 $ 158,100 Additional Information on Current-Year Transactions a. The loss on the cash sale of equipment was $2,100 (details in b). b. Sold equipment costing $51,000, with accumulated depreciation of $22,850, for $26,050 cash. c. Purchased equipment costing $113,250 by paying $43,250 cash and signing a long-term notes payable for the balance. d. Paid $42,500 cash to reduce the long-term notes payable. e. Issued 3,000 shares of common stock for $15 cash per share. f. Declared and paid cash dividends of $53,600