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Could you make corrections of what my instructor is asking of me. Its already done just need those corrections on it.

This is a comprehensive problem all contained on this spreadsheet tab. You are to prepare a cash flow statement, a vertical analysis, a horizontal analysis, and some ratio calculations. Scroll down the spreadsheet to complete each part. Philadelphia Widget Corporation is in the process of preparing financial statements for the year ended 12/31/2015. They have completed the balance sheet and income statement as shown. Philadelphia Widget Corporation Income Statement For the year ended 12/31/2015 Revenue Cost of Goods Sold Gross Profit 1,235,000 806,356 428,644 Administrative Expenses: Salaries Rent Depreciation Total Administrative Expense Operating Profit 212,450 82,500 24,800 Consider these in the normal c 319,750 108,894 Gain on Sale of Equipment Interest Expense Net Income 4,500 (42,115) 71,279 Consider these as not part of t Philadelphia Widget Corporation Balance Sheet As of 12/31/2015, 12/31/2014, and 12/31/2013 2015 Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Land Buildings and Equipment Accumulated Depreciation Total Assets Accounts Payable Wages payable 182,450 78,900 2014 119,411 85,455 41,600 14,500 260,966 89,564 83,118 48,560 18,100 239,342 50,000 50,000 103,550 172,450 62,600 109,850 414,516 399,192 62,525 4,500 51,480 4,500 Unearned Revenue 3,000 - Current Portion of Long-Term Debt Total Current Liabilities 50,000 120,025 50,000 105,980 Long-Term Debt 175,000 225,000 Common Stock, 3500 shares outstanding Retained Earnings Total Stockholders' Equity 35,000 84,491 Total Liabilities and Equity 35,000 33,212 119,491 68,212 414,516 399,192 A. Prepare a Statement of Cash Flow using the indirect method for the 2015, using the above statements and the following add 1. Equipment costing $30,000 was purchased in 2015. 2. Equipment having an original cost of $20,000 and accumulated depreciation of $8,500 was sold for $16,000 during 2015. 3. A dividend of $20,000 was declared and paid in 2015. Philadelphia Widget Corporation Statement of Cash Flow For the year ended 12/31/2015 Cash provided (used) by operating activities: Net income Adjustments to reconcile net income to net cash: Increase in accounts receivable Increase in accounts payable Decrease in inventory Decrease in prepaid expenses Increase in unearned revenue Depreciation expense Gain on sale of operating assets Net cash provided by operating activities Cash provided (used) by investing activities: Purchase of equipment Sale of equipment Net cash (used) in investing activities Cash provided (used) in financing activities: Repayment of long-term debt Dividends paid 71,279 (2,337) 11,045 6,960 3,600 3,000 24,800 (4,500) 113,847 (30,000) 16,000 Note that the entire proceeds (14,000) (50,000) (20,000) (70,000) Total cash provided (used) 29,847 Cash at the beginning of the year Cash at the end of the year 89,564 119,411 Note that you need to make su B. Prepare a vertical analysis (1 year) of the income statement above and a horizontal analysis (2 years) of the balance sheet. Philadelphia Widget Corporation Vertical Analysis of Income Statement Revenue Cost of Goods Sold Gross Profit 1,235,000 806,356 428,644 100.0% 65.3% 34.7% Salaries Rent Depreciation Total Administrative Expense Operating Profit 212,450 82,500 24,800 319,750 108,894 17.2% 6.7% 2.0% 25.9% 8.8% Gain on Sale of Equipment Interest Expense Net Income 4,500 (42,115) 71,279 0.4% -3.4% 5.8% Administrative Expenses: I hope you see we use revenue Philadelphia Widget Corporation Horizontal Analysis of Balance Sheet Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets 2015 119,411 85,455 41,600 14,500 260,966 Land Buildings and Equipment, net 50,000 103,550 0.0% -5.7% 50,000 109,850 0.0% -2.1% 414,516 3.8% 399,192 -7.8% 62,525 4,500 3,000 50,000 120,025 21.5% 0.0% n/c 0.0% 13.3% 51,480 4,500 50,000 105,980 13.9% 200.0% n/c 0.0% 9.6% Total Assets Accounts Payable Wages Payable Unearned Revenue Current Portion of Long-Term Debt Total Current Liabilities 33.3% 2.8% -14.3% -19.9% 9.0% 2014 89,564 83,118 48,560 18,100 239,342 -15.2% 6.0% -22.4% -24.6% -11.6% Long-Term Debt Common Stock Retained Earnings Total Liabilities and Equity 175,000 -22.2% 225,000 -18.2% 35,000 84,491 0.0% 154.4% 35,000 33,212 0.0% 26.9% 414,516 3.8% 399,192 -7.8% * n/c = not calculable C. Calculate the following ratios based on 12/31/2015 numbers: 1. Earnings per share 20.37 2. Return on common stockholder's equity 3. Return on assets 4. Current ratio 5. Acid-test ratio 6. Accounts receivable turnover 75.9% 17.5% 2.17 1.71 14.65 We analysis financial stateme See the excel formulas w statement, a vertical d 12/31/2015. ider these in the normal course of business ider these as not part of the normal course of business 2013 105,644 78,400 62,600 24,000 270,644 50,000 166,800 54,580 Current assets are 12 months or the operating cycle which ever is longer This is also called Property Plant and Equipment 112,220 432,864 45,200 1,500 Current liabilities are 12 months or the operating cycle which ever is longer 50,000 96,700 275,000 35,000 26,164 61,164 Cummulative net income less net losses less dividends over the life of the organization 432,864 ents and the following additional information: or $16,000 during 2015. I like to call these 3 sections OIF - easy to remember O- operating I-Investing F- Financing This section is simply the income statement and change current assets and liabilities (You reverse deprecation since it is not cash (you reverse the gains and lossed since not cash) This section is simply investments and cash PPE that the entire proceeds go in this section, and the gain is subtracted from the operating section. This is your cash transactions with the banks and shareholders that you need to make sure that your ending cash here matches your cash on the balance sheet. s) of the balance sheet. e you see we use revenues as the base 2013 105,644 Just showing the percent change by period 78,400 62,600 24,000 270,644 50,000 112,220 432,864 45,200 1,500 50,000 96,700 275,000 35,000 26,164 432,864 nalysis financial statements using ratios he excel formulas which ever is longer e which ever is longer There are 3 problems this week. Click on the tabs at the bottom of the spreadsheet to view each problem. Prepare the journal entries for the eight following transactions. Use dates but descriptions are not required. On 10/1/15, Equipment was purchased for $10,000 cash down payment and a 10% per annum promissory note of $40,000 10/1/2015 Equipment Cash Notes payable 50,000 On 12/31/15, the fiscal year ended and the accrued interest was recorded as an adjusting entry. 12/31/2015 Interest Expense Interest Payable on Notes 1,000 On June 30, 2016 the note was paid in full. No interest has been accrued in 2016 yet. 6/30/2016 Notes Payable Interest Expense Interest Payable on Note Cash 40,000 2,000 1,000 There are 10,000 shares of $2 par common stock outstanding. The board of directors declares a 15 cent dividend per share 5/15/2016 Retained Earnings Dividends payable 1,500 On June 30, the above declared dividend is paid to holders of record as of June 20, 2016 6/30/2016 Dividends Payable Cash 1,500 There are 8,000 shares of $10 par common stock outstanding. On July 15, 2016 the market value of the stock is $72 per sh 7/15/2016 Retained Earnings Stock Dividends Distributable Paid in Capital 57,600 On July 30, 2016 the above shown stock dividend is paid to holders of record as of July 20. 7/30/2016 Stock Dividends Distributable Common Stock 8,000 On August 10, 2016 the board of directors declares a 2-for-1 stock split of 50,000 outstanding shares of $15 par value comm 8/10/2016 Common Stock $15 par value Common stock $7.50 par value 7,500 w each problem. s are not required. num promissory note of $40,000. 10,000 40,000 1,000 43,000 ares a 15 cent dividend per share on May 15, 2016. Note that it would also be correct to debit the dividends account 1,500 1,500 et value of the stock is $72 per share and the board of directors declares a 10% stock dividend. 8,000 49,600 8,000 ing shares of $15 par value common stock. 7,500 Examine the following items and prepare the current liabilities section of the Balance sheet for Annapolis Corporation as of December 31, 2015 The beginning of year accounts payable was $82,000. Purchases on trade accounts during the year were $452,000, and payments on account were $415,000. The company incurs substantial costs in its manufacturing plant. As of December 31, 2015, it is estimated that $38,000 of electricity has been used. The monthly billing for December has not yet been received. Annapolis Corporation has accepted deposits from customers in advance for product that will not ship until 2016 in the amount of $174,500. Annapolis Corporation has collected sales tax totaling $6,800 from customers during the month of December, 2015. This tax must be remitted to the state by January 10, 2016. Annapolis Corporation has $2,000,000 outstanding on a bank loan. The interest rate is 7.5% per annum and the interest is paid monthly on the first day of each month for the prior month. The loan listed above has principle repayment obligations equally spread over eight years beginning in 2016. Annapolis Corporation Partial Balance Sheet as of December 31, 2015 Current Liabilities Accounts Payable Utilities Payable Unearned Revenue Sales Tax Payable Interest Payable Current Portion of Long Term Debt $ 119,000 38,000 174,500 6,800 12,500 250,000 Total Current Liabilities $ 600,800 another acceptable option is to accrue the $55,000 in accounts payable and then reverse the accrual when the bill comes i rual when the bill comes in. Payroll problem. The facts and instructions are listed below: 1 Mike works for Baltimore Corp. Fact's related to Mike's paycheck are listed below. He is paid $5,000 once per month on payroll. 2 Mike's pay is subject to social security taxes at a 6.2% rate and Medicare at a 1.45% rate. He has not exceeded the annu match on the 3rd business day after pay day. 3 4 Assume Mike's income tax withholding to be equal to $15% for Federal and 5% for Maryland. Assume that both of thes Baltimore Corp. pays for workers' compensation insurance at a 3.5% rate. None of this cost is paid by the employee. 5 Baltimore Corp provides its employees with health care insurance, and pays 80% of the $600 per employee monthly pre established a pre-tax plan for health insurance premiums. 6 Mike participates in a tax-sheltered deferred savings plan (401k plan) and has 6% of his gross pay withheld each month. match after 5%. This is sent to the investment company on the 10th of the following month. 7 Baltimore Corp's payroll is subject to federal (FUTA) tax of 6.2% of the first $7,000 of employee pay per year. The payrol pay per year. Both taxes are paid by the employer and the employee does not have these taxes withheld. 8 Mike participates in the Charitable giving program to donate money to Baltimore Habitat for Humanity each month. $2 following month. (a) (b) (c) Calculate Mikes net pay check in the space provided below. Prepare journal entries for Mike's pay and the related payroll expenses. What is the total cost to Baltimore Corp for Mike's services during February? (a) Gross Pay Less pre-tax deductions: 401k Health insurance Federal and State taxable Federal income tax Maryland income tax Social security Medicare tax Charity Net Pay Journal Entries (b) Salary Expense Cash Social security tax payable $ Amounts 5,000.00 $ $ $ $ $ $ $ $ 300.00 120.00 4,580.00 687.00 229.00 310.00 72.50 25.00 $ 3,256.50 Debit 5,000.00 Medicare tax payable Federal income tax withholding payable MD income tax withholding payable Health Insurance premium payable 401k Savings plan payable Payable to Charity To record February payroll Payroll tax expense Worker Compensation expense Health insurance expense 401k expense Social security tax payable Medicare tax payable FUTA tax payable SUTA tax payable 401k Savings plan payable Worker compensation premium payable Health Insurance premium payable 646.50 175.00 480.00 250.00 (c) Expenses: Salary Expense Payroll tax expense Worker Compensation expense Health insurance expense 401k expense Total cost to employ Mike 5,000.00 646.50 175.00 480.00 250.00 $ 6,551.50 000 once per month on the last day of the month. He has already been paid for January. You are computing February s not exceeded the annual base for social security taxes. Assume the company will remit this tax and any employer ssume that both of these withheld taxes will be remitted on the 3rd business day after pay day. aid by the employee. r employee monthly premium. The other 20% is paid by employees via payroll withholdings. The company has y withheld each month. Baltimore Corp provides a 100% matching contribution of the first 5% of worker pay. There is no pay per year. The payroll is also subject to Maryland unemployment tax (SUTA) of 4.0% of the first $8,500 of employee withheld. manity each month. $25 is withheld from his check and sent to the charity by Baltimore Corp on the 10th of the social security and Medicare tax are charged on the full $5,000. these two are often shown as one amount on paychecks as FICA @ 7.65% Credit 3,256.50 310.00 72.50 687.00 229.00 Using the word withholding on these two accounts to distinguish from the Corporation's taxes. 120.00 300.00 25.00 310.00 72.50 124.00 140.00 250.00 175.00 480.00 This is the employer match This is the employer match Only $2000 is taxed because $5000 was taxed in January Only $3500 is taxed because $5000 was taxed in January Corporation's taxes. This is a comprehensive problem all contained on this spreadsheet tab. You are to prepare a cash flow statement, a vertical analysis, a horizontal analysis, and some ratio calculations. Scroll down the spreadsheet to complete each part. Philadelphia Widget Corporation is in the process of preparing financial statements for the year ended 12/31/2015. They have completed the balance sheet and income statement as shown. Philadelphia Widget Corporation Income Statement For the year ended 12/31/2015 Revenue Cost of Goods Sold Gross Profit 1,235,000 806,356 428,644 Administrative Expenses: Salaries Rent Depreciation Total Administrative Expense Operating Profit 212,450 82,500 24,800 Consider these in the normal c 319,750 108,894 Gain on Sale of Equipment Interest Expense Net Income 4,500 (42,115) 71,279 Consider these as not part of t Philadelphia Widget Corporation Balance Sheet As of 12/31/2015, 12/31/2014, and 12/31/2013 2015 Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Land Buildings and Equipment Accumulated Depreciation Total Assets Accounts Payable Wages payable 182,450 78,900 2014 119,411 85,455 41,600 14,500 260,966 89,564 83,118 48,560 18,100 239,342 50,000 50,000 103,550 172,450 62,600 109,850 414,516 399,192 62,525 4,500 51,480 4,500 Unearned Revenue 3,000 - Current Portion of Long-Term Debt Total Current Liabilities 50,000 120,025 50,000 105,980 Long-Term Debt 175,000 225,000 Common Stock, 3500 shares outstanding Retained Earnings Total Stockholders' Equity 35,000 84,491 Total Liabilities and Equity 35,000 33,212 119,491 68,212 414,516 399,192 A. Prepare a Statement of Cash Flow using the indirect method for the 2015, using the above statements and the following add 1. Equipment costing $30,000 was purchased in 2015. 2. Equipment having an original cost of $20,000 and accumulated depreciation of $8,500 was sold for $16,000 during 2015. 3. A dividend of $20,000 was declared and paid in 2015. Philadelphia Widget Corporation Statement of Cash Flow For the year ended 12/31/2015 Cash provided (used) by operating activities: Net income Adjustments to reconcile net income to net cash: Increase in accounts receivable Increase in accounts payable Decrease in inventory Decrease in prepaid expenses Increase in unearned revenue Depreciation expense Gain on sale of operating assets Net cash provided by operating activities Cash provided (used) by investing activities: Purchase of equipment Sale of equipment Net cash (used) in investing activities Cash provided (used) in financing activities: Repayment of long-term debt Dividends paid 71,279 (2,337) 11,045 6,960 3,600 3,000 24,800 (4,500) 113,847 (30,000) 16,000 Note that the entire proceeds (14,000) (50,000) (20,000) (70,000) Total cash provided (used) 29,847 Cash at the beginning of the year Cash at the end of the year 89,564 119,411 Note that you need to make su B. Prepare a vertical analysis (1 year) of the income statement above and a horizontal analysis (2 years) of the balance sheet. Philadelphia Widget Corporation Vertical Analysis of Income Statement Revenue Cost of Goods Sold Gross Profit 1,235,000 806,356 428,644 100.0% 65.3% 34.7% Salaries Rent Depreciation Total Administrative Expense Operating Profit 212,450 82,500 24,800 319,750 108,894 17.2% 6.7% 2.0% 25.9% 8.8% Gain on Sale of Equipment Interest Expense Net Income 4,500 (42,115) 71,279 0.4% -3.4% 5.8% Administrative Expenses: I hope you see we use revenue Philadelphia Widget Corporation Horizontal Analysis of Balance Sheet Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets 2015 119,411 85,455 41,600 14,500 260,966 Land Buildings and Equipment, net 50,000 103,550 0.0% -5.7% 50,000 109,850 0.0% -2.1% 414,516 3.8% 399,192 -7.8% 62,525 4,500 3,000 50,000 120,025 21.5% 0.0% n/c 0.0% 13.3% 51,480 4,500 50,000 105,980 13.9% 200.0% n/c 0.0% 9.6% Total Assets Accounts Payable Wages Payable Unearned Revenue Current Portion of Long-Term Debt Total Current Liabilities 33.3% 2.8% -14.3% -19.9% 9.0% 2014 89,564 83,118 48,560 18,100 239,342 -15.2% 6.0% -22.4% -24.6% -11.6% Long-Term Debt Common Stock Retained Earnings Total Liabilities and Equity 175,000 -22.2% 225,000 -18.2% 35,000 84,491 0.0% 154.4% 35,000 33,212 0.0% 26.9% 414,516 3.8% 399,192 -7.8% * n/c = not calculable C. Calculate the following ratios based on 12/31/2015 numbers: 1. Earnings per share 20.37 2. Return on common stockholder's equity 3. Return on assets 4. Current ratio 5. Acid-test ratio 6. Accounts receivable turnover 75.9% 17.5% 2.17 1.71 14.65 We analysis financial stateme See the excel formulas w statement, a vertical d 12/31/2015. ider these in the normal course of business ider these as not part of the normal course of business 2013 105,644 78,400 62,600 24,000 270,644 50,000 166,800 54,580 Current assets are 12 months or the operating cycle which ever is longer This is also called Property Plant and Equipment 112,220 432,864 45,200 1,500 Current liabilities are 12 months or the operating cycle which ever is longer 50,000 96,700 275,000 35,000 26,164 61,164 Cummulative net income less net losses less dividends over the life of the organization 432,864 ents and the following additional information: or $16,000 during 2015. I like to call these 3 sections OIF - easy to remember O- operating I-Investing F- Financing This section is simply the income statement and change current assets and liabilities (You reverse deprecation since it is not cash (you reverse the gains and lossed since not cash) This section is simply investments and cash PPE that the entire proceeds go in this section, and the gain is subtracted from the operating section. This is your cash transactions with the banks and shareholders that you need to make sure that your ending cash here matches your cash on the balance sheet. s) of the balance sheet. e you see we use revenues as the base 2013 105,644 Just showing the percent change by period 78,400 62,600 24,000 270,644 50,000 112,220 432,864 45,200 1,500 50,000 96,700 275,000 35,000 26,164 432,864 nalysis financial statements using ratios he excel formulas which ever is longer e which ever is longer This is a comprehensive problem all contained on this spreadsheet tab. You are to prepare a cash flow statement, a vertical analysis, a horizontal analysis, and some ratio calculations. Scroll down the spreadsheet to complete each part. Philadelphia Widget Corporation is in the process of preparing financial statements for the year ended 12/31/2015. They have completed the balance sheet and income statement as shown. Philadelphia Widget Corporation Income Statement For the year ended 12/31/2015 Revenue Cost of Goods Sold Gross Profit 1,235,000 806,356 428,644 Administrative Expenses: Salaries Rent Depreciation Total Administrative Expense Operating Profit 212,450 82,500 24,800 Consider these in the normal c 319,750 108,894 Gain on Sale of Equipment Interest Expense Net Income 4,500 (42,115) 71,279 Consider these as not part of t Philadelphia Widget Corporation Balance Sheet As of 12/31/2015, 12/31/2014, and 12/31/2013 2015 Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Land Buildings and Equipment Accumulated Depreciation Total Assets Accounts Payable Wages payable 182,450 78,900 2014 119,411 85,455 41,600 14,500 260,966 89,564 83,118 48,560 18,100 239,342 50,000 50,000 103,550 172,450 62,600 109,850 414,516 399,192 62,525 4,500 51,480 4,500 Unearned Revenue 3,000 - Current Portion of Long-Term Debt Total Current Liabilities 50,000 120,025 50,000 105,980 Long-Term Debt 175,000 225,000 Common Stock, 3500 shares outstanding Retained Earnings Total Stockholders' Equity 35,000 84,491 Total Liabilities and Equity 35,000 33,212 119,491 68,212 414,516 399,192 A. Prepare a Statement of Cash Flow using the indirect method for the 2015, using the above statements and the following add 1. Equipment costing $30,000 was purchased in 2015. 2. Equipment having an original cost of $20,000 and accumulated depreciation of $8,500 was sold for $16,000 during 2015. 3. A dividend of $20,000 was declared and paid in 2015. Philadelphia Widget Corporation Statement of Cash Flow For the year ended 12/31/2015 Cash provided (used) by operating activities: Net income Adjustments to reconcile net income to net cash: Increase in accounts receivable Increase in accounts payable Decrease in inventory Decrease in prepaid expenses Increase in unearned revenue Depreciation expense Gain on sale of operating assets Net cash provided by operating activities Cash provided (used) by investing activities: Purchase of equipment Sale of equipment Net cash (used) in investing activities Cash provided (used) in financing activities: Repayment of long-term debt Dividends paid 71,279 (2,337) 11,045 6,960 3,600 3,000 24,800 (4,500) 113,847 (30,000) 16,000 Note that the entire proceeds (14,000) (50,000) (20,000) (70,000) Total cash provided (used) 29,847 Cash at the beginning of the year Cash at the end of the year 89,564 119,411 Note that you need to make su B. Prepare a vertical analysis (1 year) of the income statement above and a horizontal analysis (2 years) of the balance sheet. Philadelphia Widget Corporation Vertical Analysis of Income Statement Revenue Cost of Goods Sold Gross Profit 1,235,000 806,356 428,644 100.0% 65.3% 34.7% Salaries Rent Depreciation Total Administrative Expense Operating Profit 212,450 82,500 24,800 319,750 108,894 17.2% 6.7% 2.0% 25.9% 8.8% Gain on Sale of Equipment Interest Expense Net Income 4,500 (42,115) 71,279 0.4% -3.4% 5.8% Administrative Expenses: I hope you see we use revenue Philadelphia Widget Corporation Horizontal Analysis of Balance Sheet Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets 2015 119,411 85,455 41,600 14,500 260,966 Land Buildings and Equipment, net 50,000 103,550 0.0% -5.7% 50,000 109,850 0.0% -2.1% 414,516 3.8% 399,192 -7.8% 62,525 4,500 3,000 50,000 120,025 21.5% 0.0% n/c 0.0% 13.3% 51,480 4,500 50,000 105,980 13.9% 200.0% n/c 0.0% 9.6% Total Assets Accounts Payable Wages Payable Unearned Revenue Current Portion of Long-Term Debt Total Current Liabilities 33.3% 2.8% -14.3% -19.9% 9.0% 2014 89,564 83,118 48,560 18,100 239,342 -15.2% 6.0% -22.4% -24.6% -11.6% Long-Term Debt Common Stock Retained Earnings Total Liabilities and Equity 175,000 -22.2% 225,000 -18.2% 35,000 84,491 0.0% 154.4% 35,000 33,212 0.0% 26.9% 414,516 3.8% 399,192 -7.8% * n/c = not calculable C. Calculate the following ratios based on 12/31/2015 numbers: 1. Earnings per share 20.37 2. Return on common stockholder's equity 3. Return on assets 4. Current ratio 5. Acid-test ratio 6. Accounts receivable turnover 75.9% 17.5% 2.17 1.71 14.65 We analysis financial stateme See the excel formulas w statement, a vertical d 12/31/2015. ider these in the normal course of business ider these as not part of the normal course of business 2013 105,644 78,400 62,600 24,000 270,644 50,000 166,800 54,580 Current assets are 12 months or the operating cycle which ever is longer This is also called Property Plant and Equipment 112,220 432,864 45,200 1,500 Current liabilities are 12 months or the operating cycle which ever is longer 50,000 96,700 275,000 35,000 26,164 61,164 Cummulative net income less net losses less dividends over the life of the organization 432,864 ents and the following additional information: or $16,000 during 2015. I like to call these 3 sections OIF - easy to remember O- operating I-Investing F- Financing This section is simply the income statement and change current assets and liabilities (You reverse deprecation since it is not cash (you reverse the gains and lossed since not cash) This section is simply investments and cash PPE that the entire proceeds go in this section, and the gain is subtracted from the operating section. This is your cash transactions with the banks and shareholders that you need to make sure that your ending cash here matches your cash on the balance sheet. s) of the balance sheet. e you see we use revenues as the base 2013 105,644 Just showing the percent change by period 78,400 62,600 24,000 270,644 50,000 112,220 432,864 45,200 1,500 50,000 96,700 275,000 35,000 26,164 432,864 nalysis financial statements using ratios he excel formulas which ever is longer e which ever is longer