Company's current-year income statement, compar dditional information fol ales are credit sales s from customers, (3) all purchases of inventory are on credit, and (4) all debits to Accounts Payable reflect cash payments for inventory. Brown COMPANY Brown COMPANY Income Statement Comparative Balance Sheets For Current Year Ended December 31 At December 31 Current Year Prior Year 582,500 Asset Cost of goods sold . 285,000 49,800 73,500 Gross profit ........." 297,500 Accounts Receivable 65,810 50.625 Operating expenses (excluding depreciation) ..... 132,400 Inventory ... 275,656 251,800 Depreciation expense . 20,750 153,150 Prepaid expenses 1,250 1,875 Other gains (losses) .... Total Current assets 392,516 377,800 Loss on sale of equipment . -5,125 Equipment ..... 157,500 108,000 income before taxes . 139,225 Accum. Depreciation-Equipment .. -36,625 -46,000 Income taxes expense ... 24,250 Total Assets .. $13,391 439,800 Net income .... 14,975 Liabilities and Equity Additional Information on Current-Year Transactions Accounts payable ... 53,141 114,675 a. The loss on the cash sale of equipment was $5, 125 (details in b). Long-term notes payable 75,000 54,750 . Sold equipment costing $46,875, with accumulated depreciation of $30,125, Total liabilities ..... 128,141 169,425 for $11,625 cash. . Purchased equipment costing $96,375 by paying $30,000 cash and signing Equity a long-term notes payable for the balance. Common stock, $5 par value ......... 162,750 150,250 d. Paid $46,125 cash to reduce the long-term notes payable. Paid-in capital in excess of par, common stock ......... 37.500 e. Issued 2,500 shares of common stock for $20 cash per share. Retained earnings ..... 185,000 120,125 f. Declared and paid cash dividends of $50, 100. Total liabilities and equity ...... 513,391 439,800 tions: ete the questions below. Show your work to each question in the corresponding tabs in this Excel workbook. our name in the highlighted cell on each sheet with your solution. is Excel workbook using the following naming convention: Excel Projectl-CashFlows_LastName_FirstInitial rm and presentation of your work contribute towards your grade the completed workbook via Canvas by 11:59 pm on 7/31/21. ed: Prepare a cash flow worksheet to aid in the preparation of the statement of cash flows using the indirect method. (25 pts.) refer to the information reported about Brown Company above and the following list of transactions and events. dentify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events. a. Net income was $114,975. g. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. This yielded a loss of $5,125 b. Accounts receivable increased. h. Purchased equipment costing $96,375 by paying $30,000 cash and c. Inventory increased. (i) by signing a long-term notes payable for the balance. I. Prepaid expenses decreased. j. Paid $46, 125 cash to reduce the long-term notes payable. . Accounts payable decreased. k. Issued 2,500 shares of common stock for $20 cash per share. . Depreciation expense was $20,750. 1. Declared and paid cash dividends of $50,100. Prepare a complete statement of cash flows using the indirect method for the current year. Disclose any noncash investing and financing activities in a note. (15 pts.) Analyze and discuss the statement of cash flows prepared in part 2a, giving special attention to the wisdom of the cash dividend payment. (5 pts.) Prepare a complete statement of cash flows using the direct method. Disclose any noncash investing and financing activities in a note. (15 pts.)Brown Company's current-year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect c receipts from customers, (3) all purchases of inventory are on credit, and (4) all debits to Accounts Payable reflect cash payments for inventory. Brown COMPANY Brown COMPANY Income Statement Comparative Balance Sheets For Current Year Ended December 31 At December 31 Current Year Prior Sales . . ............5454549 582,500 Assets Cost of goods sold ... 285,000 Cash ......... 49,800 Gross profit .........." 297,500 Accounts Receivable . 65,810 Operating expenses (excluding depreciation) .................... 132,400 Inventory .......... 275,656 Depreciation expense ...... 20,750 153,150 Prepaid expenses ....." 1,250 Other gains (losses) .. Total Current assets ...... 392,516 Loss on sale of equipment .. -5,125 Equipment ...... 157,500 Income before taxes ...... 139,225 Accum. Depreciation-Equipment .. -36,625 Income taxes expense . 24,250 Total Assets ........... $13,391 14,975 Liabilities and Equity Additional Information on Current-Year Transactions Accounts payable . ............" 53,141 a. The loss on the cash sale of equipment was $5, 125 (details in b). Long-term notes payable ..... 75,000 b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, Total liabilities ...................." 128,141 for $11,625 cash. c. Purchased equipment costing $96,375 by paying $30,000 cash and signing Equity a long-term notes payable for the balance. Common stock, $5 par value ...........................:" 162,750 d. Paid $46, 125 cash to reduce the long-term notes payable. Paid-in capital in excess of par, common stock ........... 37,500 e. Issued 2,500 shares of common stock for $20 cash per share. Retained earnings . ........ 185,000 f. Declared and paid cash dividends of $50, 100. Total liabilities and equity .............45.....5424 513,391 Instructions: Complete the questions below. Show your work to each question in the corresponding tabs in this Excel workbook. State your name in the highlighted cell on each sheet with your solution. Save this Excel workbook using the following naming convention: Excel Projectl-Cash Flows_LastName_FirstInitial The form and presentation of your work contribute towards your grade Submit the completed workbook via Canvas by 11:59 pm on 7/31/21. Required: Prepare a cash flow worksheet to aid in the preparation of the statement of cash flows using the indirect method. (25 pts.) Refer to the information reported about Brown Company above and the following list of transactions and events. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events. a. Net income was $114,975. g. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. This yielded a loss of $5,125, b. Accounts receivable increased. h. Purchased equipment costing $96,375 by paying $30,000 cash and c. Inventory increased. (i) by signing a long-term notes payable for the balance. d. Prepaid expenses decreased. j. Paid $46,125 cash to reduce the long-term notes payable. . Accounts payable decreased. k. Issued 2,500 shares of common stock for $20 cash per share. . Depreciation expense was $20,750. I. Declared and paid cash dividends of $50,100. 2a. Prepare a complete statement of cash flows using the indirect method for the current year. Disclose any noncash investing and financing activities in a note. (15 pts.) 2b. Analyze and discuss the statement of cash flows prepared in part 2a, giving special attention to the wisdom of the cash dividend payment. (5 pts.) 3 Prepare a complete statement of cash flows using the direct method. Disclose any noncash investing and financing activities in a note. (15 pts.)