AC313

required:

Preparing a Statement of Cash Flows Using the Direct Method using Excel's SUM Function and Multi- tab References Innovation Electronics, Inc. has provided you with the year end Income Statement Balance Sheet. The Controller has asked you to prepare the Statement of Cash Flows for the same year ended December 31, Use the information included in the Excel Simulation and the Excel functions described below to complete the task. Multi-Tab Cell Reference: Allows you to refer to data from another cell in a separate tab in the worksheet. When using the multi-tab cell reference, type the equal sign first, then click on the other tab and then click on the cell you want to reference. The syntax of a multi-tab cell reference looks different than a normal cell reference, since it includes the tab name surrounded by apostrophes and also an exclamation point before the cell location. From the Excel Simulation below, if in a blank cell on the Sheet1 tab "Income Statement B15" was entered, the formula would output the result from cell 815 in the Balance Sheet tab, or 16,000 in this example. Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: +(plus sign to add), - (minus sign to subtract). (asterisk sign to multiply). and/(forward slash to divide). From the Excel Simulation below on the Balance Sheet tab, if in a blank cell "-C15+C16" was entered, the formula would add the values from those cells and output the result, or 375,000 in this example. If using the other math symbols the result would output an appropriate answer for its function. .SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below on the Balance Sheet tab, if in a blank cell "-SUM(C10,C11,C12)" was entered, the formula would output the result of adding those three separate cells, or 236,740 in this example. Similarly, if in a blank cell "-SUM(C10:C12)" was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 236,740 in this example. Prepare a statement of cash flows using the indirect method- Excel FILE VIEW INSERT PAGE LAYOUT FORMULAS DATA REVIEW Sign In 1AA Calibri % A1 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow C E G 1 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow 2 and complete the statement of cash flows. 3 INNOVATION ELECTRONICS, INC. 4 5 Income Statement For the Year Ended December 31, 20X2 6 Net sales 7 $ 2,430,000 8 Gain on sale of land 6,500 10 Total revenues 2,436.500 11 12 Expenses: 13 Cost of goods sold $ 1,565,000 Operating expenses Depreciation expense Interest expense Income tax expense 14 598,000 15 16,000 16 17,000 63,000 17 18 Total expenses 19 2,259,000 20 21 Net income $ 177,500 22 23 24 25 Income Statement Balance Sheet Cash Flow 4 A B C 1Note: To complete the assignment, go to the worksheet tab labeled Cash Flow 2 and complete the statement of cash flows. 3 Note: Additional information is included at the bottom of the statement. INNOVATION ELECTRONICS, INC. Balance Sheet At December 31 4 5 6 20X2 20XT Assets 8 Current assets: 10 Cash 25,740 83.000 128,000 184,420 S 68,700 134,500 2,980 Accounts receivable Inventory Prepaid insurance 14 Long-term assets: Investments 11 12 13 4.560 15 211.000 120,000 255.000 203,000 (101,500) 16 Land 208,500 203,000 (117.500) Equipment Accumulated depreciation 17 18 19 20 Total assets 895 600 S 717.800 21 22 Liabilities and Stockholders' Equity 23 24 Current liabilities: Accounts payable Interest payable Income tax payable 28 Long-term liabilities: Notes payable 30 Stockholders' equity Common stock Retained earnings 25 26,500 S 3,400 30,200 81,000 2,300 32,500 26 27 29 255,000 242,000 31 273,000 307,500 230,000 32 130,000 33 34 Total liabilities and stockholders eauity 895.600 S 717 800 Cash Flow Income Statement Balance Sheet READY 1 Required: 2 Complete the statement of cash flows (indirect method) shown below by using formulas that reference 3 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 5 INNOVATION ELECTRONICS, INC. 6 Statement of Cash Flows For the Year Ended December 31, 20X2 7 8 9 Cash Flows from Operating Activities: 10 Net income 11 Adjustments to reconcile net income to net cash 12 provided by operating activities: 13 Depreciation expense 14 Gain (on sale of land) 15 Changes in current assets and current liabilities: 16 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: 25 Purchase investments 26 Sale of land 27 Net cash provided by (used in) investing activities 28 29 Cash Flows from Financing Activities: 30 Issue common stock 31 Issue long term note 15 Changes in current assets and current liabilities: 16 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: 25 Purchase investments 26 Sale of land 27 Net cash provided by (used in) investing activities 28 29 Cash Flows from Financing Activities: 30 Issue common stock 31 Issue long term note 32 Net cash provided by (used in) financing activities 33 Net increase (decrease) in cash 34 Cash at beginning of the period 35 Cash at end of the period 36 37