I am supposed to create a statement of cash flows using the changes in the adjusted trial balance and some info from the income statement. On the statement of cash flows, I'm off by $4,750 and I have no idea where the error lies. Please help.
Income statement:
Adjusted Trial Balance:
Statement of Cash Flows:
Panther Pacific Corporation Instructions: Using the August 31, 2020 adjusted trial balance information complete a multi-step income statement. Round all amounts to the nearest cent. Follow the below format notes, the rest is up to the student. Note that grades are also based an organization, formula use, and clarity of financial statement. Other requirements are: a. ONLY use accounts that have adjusted balances for Aueust 31, 2020 b. Include proper report title c. Not all rows or columns need to be used. Formulas MUST be used when necessary. Use the following format (in order): 1. Input and list sales revenue, COGS, and calculate Gross Proft. 2.Input and list operating expenses. these are normal expenses incurred while selling marine parts. Subtotal these amounts Operating expenses do NOT have to be separated into selling or general and administrative expense categories 3. Calculate income from operations 4. Input and list other revenues and gains announts - revenue earned, but NOT part of normal operations and subtotal these amounts. 5. Input and list other expenses and losses amounts expenses incurred, but NOT part af normal operatians. Interest expense is always included in this category. Subtotal these amounts. 6. Calculate Net Income Loss). Panther Pacific Corporation income Statement For the Year Ended August 31, 2020 Revenues: Sales Cost of Goods Sold Grus Profit: $ 3,700,000.00 11,509,195.00) 2,190,805.00 Operating Expenses: Travel and Entertainment Expense Wage Expense (hourly workers) Salaries Expense (Exempt Staft) Legal Expenses Insurance Expense Miscellaneous Expense Office Supplies Expense Telecommunications Expense Property Tax Expense Office Maintenance & Repair Expense Marketing Expense Bad Debt Expense Depreciation Expense - Building Depreciation Expense - Equipment Depreciation Expense - Ofice Furniture Total Operating Expenses Income From Operations 85,600.00 799,500.00 229,000.00 5.100.00 3,500.00 53,925.00 735.00 10,000.00 150,000.00 30,000.00 75,000.00 9,900.00 87,500.00 6.000.00 1,625.00 1.547,685.00 643,120.00 Other Revenues and Gains Amounts - Revenues Earned: Rent Income Realized Gain - Equity Investment Securities - Trading Total Other Revenues and Gains Amounts - Revenues Earned: 12,000.00 35,000.00 47,000.00 Other Expenses and Losses Amounts - Losses incurred: Interest Expense Realized Loss - Held to Maturity Investments Total Other Expenses and Losses Amounts - Losses incurred: (61,000.00) (30,250.00 (91,250.00) Net Income 599,870.00 Panther Pacific Corporation For the Years Ended August 31, 2019 and 2020 To complete part 2 Follow IN ORDER: 1. Create multi-step Income Statement using the August 31, 2020 adjusted balances AND formatting information from Is tab. 2. Create statement of retained earrings using August 31, 2020 adjusted balances AND formatting information from stretol RE lab. 3. Create classified balance sheet using August 31, 2020 adjusted balances AND formatting information from BS tab. 4. Create statement of cash flows using the income statement, the changes" columns from below, and the additional notes to the right of August 31, 2020 adjusted trial balance columns. To complete the "changes columns and the statement of cash flows: a. Input a formula in either the debit column OR the credit column to find the change in account balance from August 2019 to August 2020 b. Only complete the changes" cels that are outlined and have 2019 beginning balances and 2020 ending balances. Do not find changes in cels that are grayed out. c. Use the changes" amounts to create the statement of cash llows. Amounts from the income statement will also be needed. d. Pay attention to statement of cash flows additional information columns below. These give hints. August 31, 2019 Adjusted Trial Balance Cr. CHANGES COLUMNS Used ONLY for Statement of cash flows Debit Credit Additional Notes for Statement of Cash Flows August 31, 2020 Adjused Trial Balance Dr. Acct. No. Account Title Dr. Co Change in cash not required, but should match net increase or decrease in cash on smnt of cash flows 100 583,230,00 236,130.00 445,000.00 19,500.00 497,430.00 100.170.00 5.250.00 102 104 106 107 120 122 1,250.00 Cash Accounts Receivable, net Marchandise Inventory.net Office Supplies Prepaid Expenses Equity Investments - Trading Investments - Held to Maturity Land 347.600.CO 425.500.CO 597.600.00 6,500.00 10,500.00 86,450.00 12.500.00 58,650.00 26,800.00 23.850.00 32,100.00 55.950.00 140 1,000,000.00 500,000.00 1,500,000.00 2,500,000.00 1,000,000.00 3,500,000.CO 145 146 312.500.00 Use depreciation expense from income statement 170,000.00 35,000.00 205,000.00 152 85,000.00 08. 0 0 Use depreciation expense from income statement 32,500.00 8,125.00 24,375.00 A 195 Use depreciation expense from income statement 16.250.00 356,000.00 37,420.00 999,420.00 Building Accumulated Depreciation - Building Equipment Accumulated Depreciation Equipment Office Fumiture Accumulated Depreciation Office Furniture Accounts Payable Wages Payable Interest Payable Dividends Payable Unearned Rent Customer Refunds Payable Notes Payable - Long Term Bonds Payable - Long Term Premium on Bonds Payable Discount on Bands Payable Mortgage (Warehouse) Payable 6,000.00 2.000.00 4.000.00 35,600.00 202 203 204 205 206 250 251 252 253 252 6.600.00 12.000.00 200.000.00 29,000.00 212,000.00 400,000.00 200,000.00 200,000.00 248,000.00 550.000. 758,000.00 Comman Stars I Par, 100 00 00 Outstanding 68 500.00 15,500.00 81.000. 1.177.250.00 301 330 Paid in Capital - Excess of Par Common Stock Retained Earnings Cash Dividends 1,177.250.00 2,961,400.00 2,849,810.00 200.000,00 50,000.00 200.000.CO 88,000.00 340 Treasury Stock 38,000.00 Panther Pacific Corporation Statement of Cash Flows For the Year Ended August 31, 2020 Cash flows from operating activies: 598,870.00 Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Decrease in accounts receivable 95,125.00 Increase in merchandise inventory Increase in office supplies Decrease in prepaid expenses Increase in accounts payable Decrease in unearned rent Decrease in customer refunds payable 19,500.00 (100,170.00) (5,250.00) 2,000.00 37,420.00 (2,000.00) (6,600.00) 200,000.00 200,000.00 550,000.00 Increase in notes payable-long term Increase in bonds payable-long term Increase in mortgage (warehouse) payable Net cash flow from operating activities: 1,588,895.00 Cash flows from investing activities: Purchase of Equity Investments - Trading Purchase of Investments - Held to Maturity Cash used for Cash dividends Purchase of Equipment (26,800.00) (32,100.00) (200,000.00) (35,000.00) (500,000.00) (1,000,000.00) 8,125.00 (50,000.00) Purchase of Land Purchase of Building Sale of Furniture Treasury Stack (1,835,775.00) Net Cash flow used for investing activities Cash flows from financing activities: Proceeds from issue of common stock Net cash from financing activities 15,500.00 Net increase in cash Cash at the beginning of the year Cash at the end of the year 15,500.00 (231,380.00) 583,730.00 352,350.00 Panther Pacific Corporation Instructions: Using the August 31, 2020 adjusted trial balance information complete a multi-step income statement. Round all amounts to the nearest cent. Follow the below format notes, the rest is up to the student. Note that grades are also based an organization, formula use, and clarity of financial statement. Other requirements are: a. ONLY use accounts that have adjusted balances for Aueust 31, 2020 b. Include proper report title c. Not all rows or columns need to be used. Formulas MUST be used when necessary. Use the following format (in order): 1. Input and list sales revenue, COGS, and calculate Gross Proft. 2.Input and list operating expenses. these are normal expenses incurred while selling marine parts. Subtotal these amounts Operating expenses do NOT have to be separated into selling or general and administrative expense categories 3. Calculate income from operations 4. Input and list other revenues and gains announts - revenue earned, but NOT part of normal operations and subtotal these amounts. 5. Input and list other expenses and losses amounts expenses incurred, but NOT part af normal operatians. Interest expense is always included in this category. Subtotal these amounts. 6. Calculate Net Income Loss). Panther Pacific Corporation income Statement For the Year Ended August 31, 2020 Revenues: Sales Cost of Goods Sold Grus Profit: $ 3,700,000.00 11,509,195.00) 2,190,805.00 Operating Expenses: Travel and Entertainment Expense Wage Expense (hourly workers) Salaries Expense (Exempt Staft) Legal Expenses Insurance Expense Miscellaneous Expense Office Supplies Expense Telecommunications Expense Property Tax Expense Office Maintenance & Repair Expense Marketing Expense Bad Debt Expense Depreciation Expense - Building Depreciation Expense - Equipment Depreciation Expense - Ofice Furniture Total Operating Expenses Income From Operations 85,600.00 799,500.00 229,000.00 5.100.00 3,500.00 53,925.00 735.00 10,000.00 150,000.00 30,000.00 75,000.00 9,900.00 87,500.00 6.000.00 1,625.00 1.547,685.00 643,120.00 Other Revenues and Gains Amounts - Revenues Earned: Rent Income Realized Gain - Equity Investment Securities - Trading Total Other Revenues and Gains Amounts - Revenues Earned: 12,000.00 35,000.00 47,000.00 Other Expenses and Losses Amounts - Losses incurred: Interest Expense Realized Loss - Held to Maturity Investments Total Other Expenses and Losses Amounts - Losses incurred: (61,000.00) (30,250.00 (91,250.00) Net Income 599,870.00 Panther Pacific Corporation For the Years Ended August 31, 2019 and 2020 To complete part 2 Follow IN ORDER: 1. Create multi-step Income Statement using the August 31, 2020 adjusted balances AND formatting information from Is tab. 2. Create statement of retained earrings using August 31, 2020 adjusted balances AND formatting information from stretol RE lab. 3. Create classified balance sheet using August 31, 2020 adjusted balances AND formatting information from BS tab. 4. Create statement of cash flows using the income statement, the changes" columns from below, and the additional notes to the right of August 31, 2020 adjusted trial balance columns. To complete the "changes columns and the statement of cash flows: a. Input a formula in either the debit column OR the credit column to find the change in account balance from August 2019 to August 2020 b. Only complete the changes" cels that are outlined and have 2019 beginning balances and 2020 ending balances. Do not find changes in cels that are grayed out. c. Use the changes" amounts to create the statement of cash llows. Amounts from the income statement will also be needed. d. Pay attention to statement of cash flows additional information columns below. These give hints. August 31, 2019 Adjusted Trial Balance Cr. CHANGES COLUMNS Used ONLY for Statement of cash flows Debit Credit Additional Notes for Statement of Cash Flows August 31, 2020 Adjused Trial Balance Dr. Acct. No. Account Title Dr. Co Change in cash not required, but should match net increase or decrease in cash on smnt of cash flows 100 583,230,00 236,130.00 445,000.00 19,500.00 497,430.00 100.170.00 5.250.00 102 104 106 107 120 122 1,250.00 Cash Accounts Receivable, net Marchandise Inventory.net Office Supplies Prepaid Expenses Equity Investments - Trading Investments - Held to Maturity Land 347.600.CO 425.500.CO 597.600.00 6,500.00 10,500.00 86,450.00 12.500.00 58,650.00 26,800.00 23.850.00 32,100.00 55.950.00 140 1,000,000.00 500,000.00 1,500,000.00 2,500,000.00 1,000,000.00 3,500,000.CO 145 146 312.500.00 Use depreciation expense from income statement 170,000.00 35,000.00 205,000.00 152 85,000.00 08. 0 0 Use depreciation expense from income statement 32,500.00 8,125.00 24,375.00 A 195 Use depreciation expense from income statement 16.250.00 356,000.00 37,420.00 999,420.00 Building Accumulated Depreciation - Building Equipment Accumulated Depreciation Equipment Office Fumiture Accumulated Depreciation Office Furniture Accounts Payable Wages Payable Interest Payable Dividends Payable Unearned Rent Customer Refunds Payable Notes Payable - Long Term Bonds Payable - Long Term Premium on Bonds Payable Discount on Bands Payable Mortgage (Warehouse) Payable 6,000.00 2.000.00 4.000.00 35,600.00 202 203 204 205 206 250 251 252 253 252 6.600.00 12.000.00 200.000.00 29,000.00 212,000.00 400,000.00 200,000.00 200,000.00 248,000.00 550.000. 758,000.00 Comman Stars I Par, 100 00 00 Outstanding 68 500.00 15,500.00 81.000. 1.177.250.00 301 330 Paid in Capital - Excess of Par Common Stock Retained Earnings Cash Dividends 1,177.250.00 2,961,400.00 2,849,810.00 200.000,00 50,000.00 200.000.CO 88,000.00 340 Treasury Stock 38,000.00 Panther Pacific Corporation Statement of Cash Flows For the Year Ended August 31, 2020 Cash flows from operating activies: 598,870.00 Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Decrease in accounts receivable 95,125.00 Increase in merchandise inventory Increase in office supplies Decrease in prepaid expenses Increase in accounts payable Decrease in unearned rent Decrease in customer refunds payable 19,500.00 (100,170.00) (5,250.00) 2,000.00 37,420.00 (2,000.00) (6,600.00) 200,000.00 200,000.00 550,000.00 Increase in notes payable-long term Increase in bonds payable-long term Increase in mortgage (warehouse) payable Net cash flow from operating activities: 1,588,895.00 Cash flows from investing activities: Purchase of Equity Investments - Trading Purchase of Investments - Held to Maturity Cash used for Cash dividends Purchase of Equipment (26,800.00) (32,100.00) (200,000.00) (35,000.00) (500,000.00) (1,000,000.00) 8,125.00 (50,000.00) Purchase of Land Purchase of Building Sale of Furniture Treasury Stack (1,835,775.00) Net Cash flow used for investing activities Cash flows from financing activities: Proceeds from issue of common stock Net cash from financing activities 15,500.00 Net increase in cash Cash at the beginning of the year Cash at the end of the year 15,500.00 (231,380.00) 583,730.00 352,350.00
