Al 1 Required: f. Required: A B C D 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 6 7 8 INNOVATION ELECTRONICS, INC. Statement of Cash Flows For the Year Ended December 31, 20X2 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: READY Income Statement Balance Sheet Cash Flow E Clipboard 1 Font Styles fx Required: A B C D E F 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 38 READY Attempt(s) Income Statement Balance Sheet Cash Flow ++ 100% Hint Formatting Table Styles Clipboard Font A 2 Styles Note: To complete the assignment, go to the worksheet tab labeled Cash B C 1 Note: 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. 4 INNOVATION ELECTRONICS, INC. D E F 5 6 7 8 Assets 9 Current assets: 10 Cash 11 Accounts receivable 12 Inventory 13 Prepaid insurance 14 Long-term assets: 15 Investments 16 Land 17 Equipment 18 Accumulated depreciation 19 20 Total assets 21 22 Balance Sheet At December 31 20X2 20X1 23 Liabilities and Stockholders' Equity 24 Current liabilities: 25 Accounts payable READY Attempt(s) References $ 184,420 $ 25,740 68,700 83,000 134,500 128,000 2,980 4,560 211,000 120,000 208,500 255,000 203,000 203,000 (117,500) (101,500) $ 895,600 $ 717,800 $ 26,500 $ Cash Flow 81,000 www Income Statement Balance Sheet Al Font Styles f Note: To complete the assignment, go to the worksheet tab labeled Cash FI A 22 23 Liabilities and Stockholders' Equity B 24 Current liabilities: 25 Accounts payable 26 Interest payable 26,500 $ 3,400 81,000 2,300 27 Income tax payable 30,200 32,500 28 Long-term liabilities: 29 Notes payable 255,000 242,000 30 Stockholders' equity: 31 Common stock 273,000 230,000 32 Retained earnings 307,500 130,000 33 34 Total liabilities and stockholders' equity $ 895,600 $ 717,800 35 36 Additional Information for 20X2: 37 1. Assume that all increases and decreases in long term assets, long term liabilities, 38 and common stock are a result of cash transactions. 39 2. Land costing $46,500 was sold, resulting in a gain of $6,500. No other 40 long-term assets were sold. 41 3. Additional long-term investments were purchased. 42 4. An additional long-term note payable was signed. No repayments on 43 notes were made. 44 5. Additional common stock was issued. 45 46 READY Attempt(s) Income Statement Balance Sheet Cash Flow 4 D E F Paste Clipboard Al BIU- Font G X 4 fe B Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Styles Note: To complete the assignment, go to the worksheet tab labeled Cash Flow D 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 E F G H 3 4 5 6 For the Year Ended December 31, 20X2 7 Net sales $ 2,430,000 8 Gain on sale of land 6,500 9 10 Total revenues 2,436,500 11 12 Expenses: 13 Cost of goods sold $ 1,565,000 14 Operating expenses 15 16 Depreciation expense Interest expense 17 Income tax expense 598,000 16,000 17,000 63,000 18 19 Total expenses 20 21 Net income 2,259,000 $ 177.500 22 23 24 25 v