Excel Assignment # 1 Statement of Cash Flow

Spring Semester

Northern Illinois Manufacturing prepared the balance sheet and income statement for this year. Now the company needs to prepare its statement of cash flow. The comparative balance sheets for Northern Illinois Manufacturing for this year and last year and the income statement for this year are presented below. (Note: Work in Process is a current asset and should be treated as any other current asset.)

Additional information:

1. Northern Illinois Manufacturing sold a piece of company equipment for $24,000. The equipment had been used for ten years. It had cost $80,000 when purchased and had a 10-years life and a $6,000 salvage value. Straight-line depreciation was used.

2. Northern Illinois Manufacturing purchased new equipment costing $209,200.

3. The company paid $50,000 in dividends.

Northern Illinois Manufacturing

Income Statement

For the year ending December 31

Sales

$5,536,077

Less: Cost of goods sold

3,132,777

Gross Profit

2,403,300

Operating expenses:

Advertising

$50,000

Insurance

400,000

Salaries and wages

584,640

Depreciation

71,319

Other op expenses

21,200

Total operating expenses

1,127,159

Income from operations

1,276,141

Other income

Gain on sale of equip

18,000

Other expenses

Interest expense

(12,187)

Net other income and expenses

5,813

Income before income tax

1,281,954

Income tax expenses

384,586

Net income

$897,368