ACC 122 Final Project Instructions The following information pertains to Draper Consulting, Inc. Draper Consulting, Inc. provides medical billing consulting services. Use the answer boxes, forms and worksheets provided in the MS Excel Answer Worksheet, do not create your own. PLEASE FOLLOW THE DIRECTIONS IN THE ORDER THEY APPEAR! DO NOT CHANGE THE FORMATTING OF ANY OF THE WORKSHEETS. ONLY ENTER YOUR ANSWERS IN THE BLANK BOXES PROVIDED! DO NOT EDIT OR OVERRIDE ANY INFORMATION ALREADY PROVIDED! Requirement 1 Based on the financial statements provided, prepare the Statement of Cash Flows for the year ended December 31, 2019 using the indirect method. Additional Information Needed: During the year, Draper Consulting sold equipment for $27,000 cash that originally cost $57,000 and had $46,000 accumulated depreciation. New equipment was purchased for cash. Bonds payable and common stock were issued for cash. Cash dividends of $28,000 were declared and paid. At the end of the year, shares of treasury stock were purchased for cash. Accounts payable relate to merchandise purchases. Draper Consulting Inc. Income Statement Year Ended December 31, 2019 Sales Revenue Less: Cost of Goods Sold 925,000 490,000 435,000 207,000 62,000 17,000 Gross Profit Expenses: Wages Expense Depreciation Expense Insurance Expense Interest Expense Income Tax Expense Total Expense Other Income and (Expenses): Gain on Sale of Equipment Net Income 12,000 57,000 355,000 16,000 96.000 Draper Consulting Inc. Balance Sheet December 31, 2019 and 2018 2019 2018 Assets: Current Assets: Cash 25,000 Accounts Receivable 68,000 33,000 51,000 126,000 Inventory 177,000 8,000 11,000 278,000 221,000 Prepaid Insurance Total Current Assets Plant Assets: Equipment Less: Accumulated Depreciation - Equipment Total Assets 887,000 (191,000) 974,000 763,000 (175,000) 809,000 Liabilities: 27,000 Current Liabilities: Accounts Payable Interest Payable Income Tax Payable 37,000 7,000 11,000 0 19,000 55,000 46,000 Total Current Liabilities Long-Term Liabilities: Bonds Payable Total Liabilities 80,000 145,000 200,000 126,000 Stockholders' Equity: Common Stock 660,000 166,000 Retained Earnings 98,000 (52,000) Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 774,000 974,000 O 683,000 809,000 2 REQUIREMENT 1: STATEMENT OF CASH FLOWS Draper Consulting, Inc Statement of Cash Flows Year Ended December 31, 2019 Cash Flows from Operating Activities: Adjustments to reconcile Net Income to net cash: Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Net Cash Provided by Investing Activities Cash Flows from Financing Activities: Net Cash Provided by Financing Activities Net Increase in Cash Cash Balance, December 31, 2018 Cash Balance, December 31, 2019