Alignment Font Clipboard A2 - Project 2 Requirements in the statement of Cash Flows' tab, use the worksheet to prepare a statement of cash flows using the indirect 9 method from the information glven. The worksheet entries and the reference numbers should be posted in the worksheet. The balances of accounts should also foot cross. In addition, the principal computations should be supported by schedules or general ledger accounts. Each student should submit an Excel file Individually on Blackboard by midnight May 4th, 2020. Show details and 10 explanations for maciel.credits 11 You have completed the field work in connection with your audit of Huskies Together Corporation for the 12 year ended December 31, 2020. The balance sheet accounts at the beginning and end of the year are 13 shown below. Huskies Together Corporation Comparative Balance Sheet Increase 12/31/2020 12/31/2019 (Decrease) Cash $99,435 $110,700 ($11,265) Accounts receivable 424,600 380,900 43,700 Inventory 635,740 576,475 59,265 Prepaid expenses 20,000 12,000 8,000 Investment in subsidiary 200,000 200,000 Cash surrender value of life insurance 16,460 14,850 1,610 Land 100,000 100,000 Buildings 525,000 400,000 125,000 Equipment 381,000 290,000 91,000 Patents (less amortization) 86,000 70,000 16,000 Trademarks 25,000 35,000 (10,000) Bond discount and issue costs 1,165 6,075 (4,910) Total debits $2,514,400 $1,996,000 $518,400 Accounts payable Income taxes payable Salaries and wages payable Allowance for doubtful accounts Accumulated depreciation-buildings marad dervar n im Example_Patent $534,000 68,000 73,500 25,000 248,000 1000 Statement of Cash Flows $508,000 34,500 12,900 23,000 230,000 102.000 $26,000 33,500 60,600 2,000 18,000 57.000 Rendy be here Using a Worksheet to Preapre the Statement of Cash AutoSave 1 A Review View Formulas Data Help Page Layout Draw Insert File Home Calibri - 12 - = = = per 20 Wr B I VILA Men Paste Alignment A2 F G Clipboard Font - X V for Project 2 A B C D E Salaries and wages payable Allowance for doubtful accounts Accumulated depreciation-buildings Accumulated depreciation - equipment Long-term notes payable Bonds payable Premium on bonds payable Common stock Paid-in capital in excesso f par-common stock Retained earnings Total credits 73,500 25,000 248,000 160,000 75,000 400,000 7,762 150,000 568,000 205,138 $2,514,400 12,900 23,000 230,000 103,000 75,000 300,000 60,600 2,000 18,000 57,000 o 125,000 418,000 166,600 $1,996,000 100,000 7,762 25,000 150,000 38,538 $518,400 46 Your working papers from the audit contain the following information: 47 1. On November 1, 2020, 25,000 shares of $1 par stock were sold for $175,000. 48 2. A patent was purchased for $31,000. 3. During the year, equipment that had a cost basis of $26,400 and on which there was accumulated 19 depreciation of $5,800 was sold for $15,000. No other plant assets were sold during the year, 4. The 10%, $300,000, 40-year bonds were dated and issued on January 2, 2007. Interest was payable on June 30 and December 31. They were sold originally at 97. These bonds were retired at 101 plus accrued 51 interest on May 31, 2020. 5. The 6%, $400,000 20-year bonds were dated January 1, 2020, and were sold on May 31 at 102 plus 52 accrued interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance was 53 $1,200. 6. Huskies acquired 60% control in Pediatric Company on January 2, 2020, for $146,000. The income Statement of Pediatric Company for 2020 shows a net income of $90,000. Huskies credited income of 54,000 (60% of Pediatric Company's $90,000 net income), which did not provide Huskies any cash 56 7. Repairs to buildings of $12,600 were charged to Accumulated Depreciation Buildings 57 8. Interest paid in 2020 was $31,000 and income taxes paid were $38,000. 58 9. Net income for the year totaled $76,538. 59 10. The company uses straight-line amortization for bond interest. 60 Huskies Together Example Patent Statement of Cash Flows Search Using a Worksheet to Preaprethe Statement of Cash Flows_Spring 2003 Review View Help Fe Home Insert Draw Page Layout Formulas Data - 12 - A A = = = 2 Wrap Text Number IV . 2. Conditional Formatas Formatting Table A. E E 2 M erye & Center - % 9 Number Number Alignment Font Clipboard C D E F Reconciling items - 2020 Dr. Cr $11,265 43,700 12/31/2019 $110,700 380,900 576,475 12,000 Increase (Decrease) ($11,265) 43,700 59,265 8,000 200,000 1,610 Cash Accounts receivable Inventory Prepaid expenses Investment in subsidiary Cash surrender value of life insurance Land Buildings Equipment Patents (less amortization) Trademarks Bond discount and issue costs Total debits 12/31/2020 $99,435 424,600 635,740 20,000 200,000 16,460 100,000 525,000 381,000 86,000 25,000 1,165 $2,514,400 14,850 100,000 400,000 290,000 70,000 35,000 6,075 $1,996,000 (1) 31,000 (2) 15,000 125,000 91,000 16,000 (10,000) (4,910) $518,400 Note that afte been entered balance shee That is, the be minus the reci the ending bal exists for all b. changes in acc reconciled. 3 $26,000 33,500 60,600 2,000 18,000 57,000 Accounts payable Income taxes payable Salaries and wages payable Allowance for doubtful accounts Accumulated depreciation-buildings Accumulated depreciation equipment Long-term notes payable Bonds payable Premium on bonds payable Common stock Paid-in capital in excesso f par-common stock Retained earnings Total credits $508,000 34,500 12,900 23.000 230,000 103,000 75,000 300,000 You can add col $534,000 68,000 73,500 25,000 248.000 160,000 75,000 400,000 7,762 150,000 568,000 205,138 $2,514,400 125,000 418,000 166.600 $1,996,000 100,000 7,762 25,000 150,000 38,538 $518,400 Statement of Cash Flows (Indirect Method) Cash flows from operating activities Huskies Together Example Patent Statement of Cash Flows * P Type here to search 8 Search AutoSave A File Home = Data Using a Worksheet to Preapre the Statement of Cash Flows Spring 2020Blue Review View Help Insert Draw P age Layout Formulas Arial 12 - A A E Wrap Tert Number U A E E 1 Merge & Center $ % B S cleboard Pont Alignment Number 76,538 34 Cash flows from operating activities 35 Net income 36 Adjustments to reconcile net income 37 to net cash used by operating 38 activities: 39 Amortization of patents 40 Increase in Accounts Receivable (2) 15,000 (43,700) 42 Net cash used by operating activities 14 Cash flows from investing activities 45 Purchase of patent (1) (31,000) 49 Net cash used by investing activities 51 Cash flows from financing activities Net cash provided by financing activities se Net decrease in cash 59 Cash, January 1, 2020 60 Cash, December 31, 2020 Supplemental disclosures of cash flow information: Huskies Together Example Patent Statement of Cash Flows Alignment Font Clipboard A2 - Project 2 Requirements in the statement of Cash Flows' tab, use the worksheet to prepare a statement of cash flows using the indirect 9 method from the information glven. The worksheet entries and the reference numbers should be posted in the worksheet. The balances of accounts should also foot cross. In addition, the principal computations should be supported by schedules or general ledger accounts. Each student should submit an Excel file Individually on Blackboard by midnight May 4th, 2020. Show details and 10 explanations for maciel.credits 11 You have completed the field work in connection with your audit of Huskies Together Corporation for the 12 year ended December 31, 2020. The balance sheet accounts at the beginning and end of the year are 13 shown below. Huskies Together Corporation Comparative Balance Sheet Increase 12/31/2020 12/31/2019 (Decrease) Cash $99,435 $110,700 ($11,265) Accounts receivable 424,600 380,900 43,700 Inventory 635,740 576,475 59,265 Prepaid expenses 20,000 12,000 8,000 Investment in subsidiary 200,000 200,000 Cash surrender value of life insurance 16,460 14,850 1,610 Land 100,000 100,000 Buildings 525,000 400,000 125,000 Equipment 381,000 290,000 91,000 Patents (less amortization) 86,000 70,000 16,000 Trademarks 25,000 35,000 (10,000) Bond discount and issue costs 1,165 6,075 (4,910) Total debits $2,514,400 $1,996,000 $518,400 Accounts payable Income taxes payable Salaries and wages payable Allowance for doubtful accounts Accumulated depreciation-buildings marad dervar n im Example_Patent $534,000 68,000 73,500 25,000 248,000 1000 Statement of Cash Flows $508,000 34,500 12,900 23,000 230,000 102.000 $26,000 33,500 60,600 2,000 18,000 57.000 Rendy be here Using a Worksheet to Preapre the Statement of Cash AutoSave 1 A Review View Formulas Data Help Page Layout Draw Insert File Home Calibri - 12 - = = = per 20 Wr B I VILA Men Paste Alignment A2 F G Clipboard Font - X V for Project 2 A B C D E Salaries and wages payable Allowance for doubtful accounts Accumulated depreciation-buildings Accumulated depreciation - equipment Long-term notes payable Bonds payable Premium on bonds payable Common stock Paid-in capital in excesso f par-common stock Retained earnings Total credits 73,500 25,000 248,000 160,000 75,000 400,000 7,762 150,000 568,000 205,138 $2,514,400 12,900 23,000 230,000 103,000 75,000 300,000 60,600 2,000 18,000 57,000 o 125,000 418,000 166,600 $1,996,000 100,000 7,762 25,000 150,000 38,538 $518,400 46 Your working papers from the audit contain the following information: 47 1. On November 1, 2020, 25,000 shares of $1 par stock were sold for $175,000. 48 2. A patent was purchased for $31,000. 3. During the year, equipment that had a cost basis of $26,400 and on which there was accumulated 19 depreciation of $5,800 was sold for $15,000. No other plant assets were sold during the year, 4. The 10%, $300,000, 40-year bonds were dated and issued on January 2, 2007. Interest was payable on June 30 and December 31. They were sold originally at 97. These bonds were retired at 101 plus accrued 51 interest on May 31, 2020. 5. The 6%, $400,000 20-year bonds were dated January 1, 2020, and were sold on May 31 at 102 plus 52 accrued interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance was 53 $1,200. 6. Huskies acquired 60% control in Pediatric Company on January 2, 2020, for $146,000. The income Statement of Pediatric Company for 2020 shows a net income of $90,000. Huskies credited income of 54,000 (60% of Pediatric Company's $90,000 net income), which did not provide Huskies any cash 56 7. Repairs to buildings of $12,600 were charged to Accumulated Depreciation Buildings 57 8. Interest paid in 2020 was $31,000 and income taxes paid were $38,000. 58 9. Net income for the year totaled $76,538. 59 10. The company uses straight-line amortization for bond interest. 60 Huskies Together Example Patent Statement of Cash Flows Search Using a Worksheet to Preaprethe Statement of Cash Flows_Spring 2003 Review View Help Fe Home Insert Draw Page Layout Formulas Data - 12 - A A = = = 2 Wrap Text Number IV . 2. Conditional Formatas Formatting Table A. E E 2 M erye & Center - % 9 Number Number Alignment Font Clipboard C D E F Reconciling items - 2020 Dr. Cr $11,265 43,700 12/31/2019 $110,700 380,900 576,475 12,000 Increase (Decrease) ($11,265) 43,700 59,265 8,000 200,000 1,610 Cash Accounts receivable Inventory Prepaid expenses Investment in subsidiary Cash surrender value of life insurance Land Buildings Equipment Patents (less amortization) Trademarks Bond discount and issue costs Total debits 12/31/2020 $99,435 424,600 635,740 20,000 200,000 16,460 100,000 525,000 381,000 86,000 25,000 1,165 $2,514,400 14,850 100,000 400,000 290,000 70,000 35,000 6,075 $1,996,000 (1) 31,000 (2) 15,000 125,000 91,000 16,000 (10,000) (4,910) $518,400 Note that afte been entered balance shee That is, the be minus the reci the ending bal exists for all b. changes in acc reconciled. 3 $26,000 33,500 60,600 2,000 18,000 57,000 Accounts payable Income taxes payable Salaries and wages payable Allowance for doubtful accounts Accumulated depreciation-buildings Accumulated depreciation equipment Long-term notes payable Bonds payable Premium on bonds payable Common stock Paid-in capital in excesso f par-common stock Retained earnings Total credits $508,000 34,500 12,900 23.000 230,000 103,000 75,000 300,000 You can add col $534,000 68,000 73,500 25,000 248.000 160,000 75,000 400,000 7,762 150,000 568,000 205,138 $2,514,400 125,000 418,000 166.600 $1,996,000 100,000 7,762 25,000 150,000 38,538 $518,400 Statement of Cash Flows (Indirect Method) Cash flows from operating activities Huskies Together Example Patent Statement of Cash Flows * P Type here to search 8 Search AutoSave A File Home = Data Using a Worksheet to Preapre the Statement of Cash Flows Spring 2020Blue Review View Help Insert Draw P age Layout Formulas Arial 12 - A A E Wrap Tert Number U A E E 1 Merge & Center $ % B S cleboard Pont Alignment Number 76,538 34 Cash flows from operating activities 35 Net income 36 Adjustments to reconcile net income 37 to net cash used by operating 38 activities: 39 Amortization of patents 40 Increase in Accounts Receivable (2) 15,000 (43,700) 42 Net cash used by operating activities 14 Cash flows from investing activities 45 Purchase of patent (1) (31,000) 49 Net cash used by investing activities 51 Cash flows from financing activities Net cash provided by financing activities se Net decrease in cash 59 Cash, January 1, 2020 60 Cash, December 31, 2020 Supplemental disclosures of cash flow information: Huskies Together Example Patent Statement of Cash Flows