Complete the statement of cash flows (indirect method) shown below by using formulas that reference data from the income statement and balance sheet (found by clicking the tabs at the bottom of this worksheet. Note: Blank cells may be included in calculations. INNOVATION ELECTRONICS, INC. Statement of Cash Flows For the Year Ended December 31, 20X2 Cash Flows from Operating Activities: ONet income 18 Prepaid insurance 19 Accounts payable 20 Interest payable 21 Income tax payable 1 Adjustments to reconcile net income to net cash 2 provided by operating activities: 3 Depreciation expense 4 Gain (on sale of land) 15 Changes in current assets and current liabilities: 16 Accounts receivable 17 Inventory 22 Net cash provided by (used in) operating activities 23 24 Cash Flows from Investing Activities: TOSOLL ONL $ 177,500 B D 1 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow 2 and complete the statement of cash flows. 6 7 Net sales 8 9 10 11 12 13 14 15 16 17 18 19 20 72235 21 24 INNOVATION ELECTRONICS, INC. Income Statement For the Year Ended December 31, 20X2 $ Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $ 1,565,000 *598,000 16,000 17,000 63,000 $ 2,430,000 6,500 2,436,500 2,259,000 177,500 E G 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. 5 Balance Sheet 6 At December 31 7 8 Assets Current assets: Cash 9 10 11 Accounts receivable 12 Inventory 13 Prepaid insurance 14 Long-term assets: 15 Investments 16 Land Equipment Accumulated depreciation 17 18 19 20 21 22 23 Liabilities and Stockholders' Equity 24 Current liabilities: 25 Accounts payable 3 Total assets READY AM *** Income Statement 20X2 $ 184,420 S 68,700 134,500 2,980 211,000 208,500 203,000 (117,500) $ 895,600 $ Balance Sheet 26,500 $ Cash Flow *** 20X1 25,740 83,000 128,000 4,560 120,000 255,000 203,000 (101,500) 717,800 81,000 D E Clipboard A25 26 27 1 Font Retained earnings 22 23 Liabilities and Stockholders' Equity 24 Current liabilities: 25 Accounts payable Interest payable Income tax payable 28 Long-term liabilities: 29 Notes payable 30 Stockholders' equity: 31 Common stock X A READY Attempt(s) fx Total liabilities and stockholders' equity Accounts payable $ Income Statement B 26,500 $ 3,400 30,200 255,000 273,000 307,500 39 2. Land costing $46,500 was sold, resulting in a gain of $6,500. No other 40 long-term assets were sold. 32 33 34 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. 895,600 $ 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 Balance Sheet Cash Flow C *** 81,000 2,300 32,500 242,000 230,000 130,000 717,800 D E 3 E F G 100%