2 Complete the statement of cash flows (indirect method) shown below by using formulas that reference data from the income statement and balance sheet (found by clicking the tabs at the bottom of this 4 worksheet. Note: Blank cells may be included in calculations. INNOVATION ELECTRONICS, INC Statement of Cash Flows For the Year Ended December 31, 20x2 Cash Flows from Operating Activities: 10 Net income 11 Adjustments to reconcile net income to net cash 39 12 provided by operating activities: 13 Depreciation expense 14 Gain (on sale of land) 15 Changes in current assets and current liabilities: 6 Accounts receivable 17 Inventory 18 Prepaid insurance 19 Accounts payable 20 Interest payable 21 Income tax payable 22 Net cash provided by (used in) operating activities 23 24 Cash Flows from Investing Activities: 2 and complete the statement of cash flows. 3 Note: Additional information is included at the bottom of the statement INNOVATION ELECTRONICS, INC 3 Balance Sheet At December 31 20X1 20X2 7 8 Assets 9 Current assets: 1:24:56 184,420 25.740 83,000 10 Cash 68.700 11 Accounts receivable 12 Inventory 128.000 134,500 13 Prepaid insurance 2,980 4,560 14 Long-term assets: 15 Investments 211,000 120,000 16 Land 208,500 255,000 203,000 203,000 (117.500) 17 Equipment 18 Accumulated depreciation (101.500) 19 717,800 20 Total assets 21 23 Liabilities and Stockholders' Equity 24 Current liabilities: 25 Accounts payable 81,000 s26.500 1 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow 2 and complete the statement of cash flows. INNOVATION ELECTRONICS, INC. Income Statement For the Year Ended December 31, 20x2 7 Net sales 8 Gain on sale of land 2,430,000 4:17 6,500 10 Total revenues 2,436,500 12 Expenses: 13 Cost of goods sold 14 Operating expenses 15 Depreciation expense 16 Interest expense 17 | Income tax expense $ 1,565,000 598,000 16,000 17,000 63,000 18 19 Total expenses 2,259,000 20 21 Net income $177,500 23