BETH wire Phase #3 Use the Comparative Balance Sheet you prepared in Required #1, step #3 and the following additional information to prepare the Statement of Cash Flows for the month of January 2022. Use the indirect method to prepare the operating activities section. Issued 20,000 new shares of common stock in exchange for a Building. The stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents. Purchased land with a cost $300,000. A down payment was made in the amount of $100,000 cash and a 10% 5- year note payable was signed for the difference. Purchased additional store equipment for $30,000 paying cash. The notes receivable were related to the sale of merchandise Inventory to a credit customer this period. Hint: The increase in notes receivable should be reported as an item in the operating activities section of the statement of cash flows Issued bonds with a face amount of $375,000 at 97. Hint: The amortization of the bond discount in the amount of $750 should be reported as an addition to the operating activities section Used the cash proceeds from the bond issue to pay off the mortgage payable of $210,000. The company repurchased 20,000 shares of its common stock on the open market for $9 per share. The company relssued 10,000 of the treasury shares at a price of $18 per share. Issued 1,500 shares of preferred stock at $105 per share. Pald cash dividends of $5,615 to preferred and common stockholders. . NO Due Date: Monday, July 12, 2021 8:00 am Submission method: Please upload your Excel file to the submission folder in D2L using the assignment link provided for you. Be sure to name your file Phase3firstnamelastname.xls. For example: Phase3 Evelyn Money.xls. Phase #4 Prepare the following Ratios for January 2022 1. Current Ratio 2. Acid-Test Ratio 3. Debt Ratio 4. Profit Margin Ratio 5. Gross Margin Ratio Due Date: Thursday, July 22, 2021 8:00 am Submission method: Please upload your Excel file to the submission folder in D2. Using the assignment link provided for you. Be sure to name your file Phase4firstnamelastname.xls. For example: Phase4Evelyn Money.xls. provements, choose Check for Updates, Credits Debits 521,865.00 $ 24,150.00 483.00 63.00 15,000.00 5,450.00 10,500.00 315.00 2,940,00 368,250.00 620,000.00 48,100.00 94,500.00 Be Prepared Adjusted Trial Balance January 31, 2022 Account ID Account Description 1001 Cash $ 1021 Accounts Receivable 1022 Allowance for Doubtful Ace 1027 Interest Receivable 1031 Notes Receivable 1051 Merchandise Inventory 1101 Store Supplies 1111 Office Supplies 1125 Prepaid Insurance 1401 Land 1411 Building 1412 Accum Dep: Building 1431 Office Equipment 1432 Accum Dep: Office Equipm 1451 Store Equipment 1452 Accum Depr: Store Equipm 1501 Patents 2001 Accounts Payable 2005 Income Taxes Payable 2031 Interest Payable 2101 Notes Payable long term 2301 Bonds Payable 2303 Discount on Bonds Payable 3001 Preferred Stock 3011 Common Stock 3101 Paid in Capital In Excess of par: Prefer 3111 Paid in Capital In Excess of par: Com 3121 Paid in Capital Treasury Stock 3300 Retained Earnings 3351 Treasury Stock 4001 Sales Revenue 4002 Sales Discount 4003 Sales Returns & Allowances 4101 Interest Revenue 18,250.00 108,750.00 16,625.00 72,775.00 25,000.00 7,500.00 4,778.00 200,000.00 375,000.00 10,500.00 412,500.00 115,000.00 15,375.00 265,750.00 180,000.00 83,485.00 180,000.00 525,000.00 1,250.00 13,000.00 150.00 MacBook Air provements, choose Check for Updates, Credits Debits 521,865.00 $ 24,150.00 483.00 63.00 15,000.00 5,450.00 10,500.00 315.00 2,940,00 368,250.00 620,000.00 48,100.00 94,500.00 Be Prepared Adjusted Trial Balance January 31, 2022 Account ID Account Description 1001 Cash $ 1021 Accounts Receivable 1022 Allowance for Doubtful Ace 1027 Interest Receivable 1031 Notes Receivable 1051 Merchandise Inventory 1101 Store Supplies 1111 Office Supplies 1125 Prepaid Insurance 1401 Land 1411 Building 1412 Accum Dep: Building 1431 Office Equipment 1432 Accum Dep: Office Equipm 1451 Store Equipment 1452 Accum Depr: Store Equipm 1501 Patents 2001 Accounts Payable 2005 Income Taxes Payable 2031 Interest Payable 2101 Notes Payable long term 2301 Bonds Payable 2303 Discount on Bonds Payable 3001 Preferred Stock 3011 Common Stock 3101 Paid in Capital In Excess of par: Prefer 3111 Paid in Capital In Excess of par: Com 3121 Paid in Capital Treasury Stock 3300 Retained Earnings 3351 Treasury Stock 4001 Sales Revenue 4002 Sales Discount 4003 Sales Returns & Allowances 4101 Interest Revenue 18,250.00 108,750.00 16,625.00 72,775.00 25,000.00 7,500.00 4,778.00 200,000.00 375,000.00 10,500.00 412,500.00 115,000.00 15,375.00 265,750.00 180,000.00 83,485.00 180,000.00 525,000.00 1,250.00 13,000.00 150.00 MacBook Air 375,000.00 10,500.00 412,500.00 115,000.00 15,375.00 265,750.00 180,000.00 83,485.00 180,000.00 525,000.00 1,250.00 13,000.00 150.00 s, choose Check for Updates -301 Bonds Payable 2303 Discount on Bonds Payable 3001 Preferred Stock 3011 Common Stock 3101 Paid in Capital In Excess of par: Prefer 3111 Paid in Capital In Excess of par: Com 3121 Paid in Capital Treasury Stock 3300 Retained Eamings 3351 Treasury Stock 4001 Sales Revenue 4002 Sales Discount 4003 Sales Returns & Allowances 4101 Interest Revenue 5001 Cost of Goods Sold 5010 Insurance Expense - General 5012 Repairs Expense: Office 5015 Depreciation Expense: Building - General 5020 Depreciation Exp: Office Eq 5025 Supplies Expense - Selling 5027 Utilities Expense: Office 5030 Office Salaries Expense 5035 Office Payroll Tax Expense 6005 Depreciation Exp: Store Eq 6010 Amortization Expense: Pat - General 6015 Sales Salaries Expense 6020 Sales Payroll Tax Expense 6022 Utilities Expense: Store 6025 Delivery Expense - General 6030 Repairs Expense: Store 6040 Bad Debts Expense - Selling 7001 Interest Expense 195,000.00 200.00 2,500.00 850.00 2,500.00 1,200.00 1,500.00 15,000.00 1,200.00 875.00 725.00 10,000.00 800.00 1,100.00 1,000.00 800.00 460.00 7,978.00 2,292,996.00 $ $ 2,292,996.00 o Foo Be Prepared Inc. Balance Sheet December 31, 2021 26,250 7,875 210,000 244, 125 Assets Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Land Building Accumulated Depreciation Building Office Equipment Accumulated Depreciation Office Equipment Store Equipment Accumulated Depreciation Store Equipment Patents Total Assets Liabilities 28,875 Accounts Payable $ 42,000 Income Taxes Payable 52,500 Mortgage Payable 1,575 Total Liabilities 3,150 68.250 420,000 Stockholder's Equity (47,250) Preferred Stock 94,500 Common Stock (15,750) Pald in Capital in Excess of par: Preferred 78,750 Paldin Capital in Excess of par Common (15,750) Retained Earnings 73.500 Total Stockholder's Equity 784,350 Total Liabitities and Stockholder's Equity $ 262,500 105,000 7.875 75,250 89,100 540,225 784,350 F G H $ 267,212.00 4,950.00 272,162.00 F39 * fx 492990 B D E 1 Statement of Cash Flows January 2022 for Be Prepared Inc. 2 $ 3 Cash flow from operating activities 4 Net income 5 Adjustments: 6 Depreciation expense for the period 7 8 9 Cash flow from operating actituites 10 Decrease in accounts receivable 18,333.00 11 Increase in interest receivable (63.00) 12 Increase in notes receivable (15,000.00) 13 Decrease in merchandise inventory 47,050.00 14 Decrease in office supplies 1,260.00 15 Increase in store supplies (10,500.00) 16 Decrease in prepaid insurance 210.00 17 Decrease in accounts payable (1,250.00) 18 Decrease in income tax payable (375.00) 19 Increase in interest payable 4,778.00 20 Decrease in discount on bonds payable (10,500.00) 21 Net changes in non cash working Capital 22 Net cash provided by operating actitvites 23 24 Cash flow from investing actitvities 25 Increase in Land 26 Increase in Building Sheet Sheet 33,943.00 306,105.00 (300,000.00) 1200.000.00 F G I E (1,250.00) (375.00) 4,778.00 (10,500.00) 33,943.00 306,105.00 (300,000.00) (200,000.00) (30,000.00) (530,000.00) D 17 Decrease in accounts payable 18 Decrease in income tax payable 19 Increase in interest payable 20 Decrease in discount on bonds payable 21 Net changes in non cash working Capital 22 Net cash provided by operating actitvites 23 24 Cash flow from investing actitvities 25 Increase in Land 26 Increase in Building 27 Increase in store Eq. 28 Cash flow from Investing 29 30 Cash flow from financing actitvites 31 Payment of mortgage 32 Increase in Notes payable 33 Increase in bond payable 34 Increase in Prefered stock& Paid in capital excess PS 35 Increase in Common stock & Paid in capital excess Common 36 Cash didvidend paid 37 38 Cash flow from financing activities 39 Net change in Cash 40 Beginning cash balance 41 Cash balance at the end of the year (210,000.00) 200,000.00 375,000.00 157,500.00 200,000.00 (5,615.00) 716,885.00 492,990.00 28,875.00 521,865.00 12 Sheet1 Sheet2 + IT UG. Kayeler he Oct one net Page Layout Data View - 1 12 fo O-A. 5 % 9 027 . A 0 H G Jan. 31.2022 25,000.00 7.500.00 4,77600 200,000.00 375,000.00 110 500 001 101.77600 1 2 1 Assets Cash 5 5 Accounts Receivable 6 Merchandise Inventory 7 Allowance for Doubtful Accounts Notes Recewbie 5 Interest Recevable 10 Office Supplies 11 Store Supplies 12 Office Equipment 11 Prepaid Insurance 15 Land 15 Building 16. Accumulated Depreciation Building 97 Accumulated Depreciation Office to 1 Store Equipment 19 Accumulated Depreciation Store 20 Patents 21 Total Assets 5 22 23 24 25 26 27 20 20 Comparative Balance Sheet Dec. 31,2021 Jan. 31.2022 Liabilities Dec. 31,2021 28875.00 521.365.00 Accounts Payable 5 26,250.00 42.000.00 24,150.00 Income Tax Payable 7.875.00 $2,500.00 5.450 00 Mortgage Payable 210,000.00 (483.00) Interest Payable 15,000.00 Notes Payable 6300 Bonds Payable 1.575.00 315.00 Discount on Bonds Payable 10,500.00 Total Liabetes 244.125.00 94,500.00 94.500.00 Stockholder's Equity 3150.00 2.940.00 Preferred Stock 262.500.00 68,250.00 365 250.00 Common Stock 105.000 DO 420,000.00 620.000.00 Paldin Capital Eest of Par Preferred 7375.00 (47.250.00 145.100.000 Paid in Capital Treasury Stock (35.750.00 (11.250.00 Paid in Capital Excess of PurCommon 75,750,00 78.750.00 108.750.00 Retained rings 9,100.00 115,750.00 116.625.00) Treasury Stock 73.500.00 72,775.00 Total Stockholders Equity 340.225.00 784,350.00 1,761,100.00 Total abilities and Stock 784.350.00 412,500.00 115.000.00 15.275.00 180,000.00 265,750.00 83 AS,00 180,000.00 192.110.00 1,761,100.00 MacBook Air Be Prepared Inc. Balance Sheet December 31, 2021 26,250 7,875 210,000 244, 125 Assets Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Land Building Accumulated Depreciation Building Office Equipment Accumulated Depreciation Office Equipment Store Equipment Accumulated Depreciation, Store Equipment Patents Total Assets Liabilities 28,875 Accounts Payable 42,000 Income Taxes Payable 52,500 Mortgage Payable 1,575 Total Liabilities 3,150 68,250 420,000 Stockholder's Equity (47,250) Preferred Stock 94,500 Common Stock (15,750) Paid in Capital in Excess of par: Preferred 78,750 Paid in Capital in Excess of par Common (15,750) Retained Earnings 73,500 Total Stockholder's Equity 784,350 Total abilities and Stockholder's Equity S 262,500 105,000 7,875 75,750 89,100 540,225 784,350