I B C D E G H I J FINANCIAL STATEMENTS a AWN Year 1 90,000 45,000 45,000 Year 2 100,000 50,000 50,000 Income Reporting Total 190,000 95,000 95,000 Key: formula required manual entry total points 13 cells in column B + C 6 cells in column B + C 19 cells worth 5.26 pts each Reporting of Equipment Income Statement 6 Mowing revenue 7 Operating expenses except depreciation 8 Income before depreciation and taxes 9 Depreciation expense (Straight-line) 10 Operating income 11 Gain (loss) on sale of equipment 12 Income before taxes 13 Income tax expense (30%) 14 Net income 15 16 Balance Sheet - Assets 18 Equipment 19 Accumulated depreciation 20 Book value 21 22 23 Statement of Cash Flows 24 Investing Activities 25 Purchase equipment Sell equipment 27 Operating Activities 28 Income taxes paid 17 Year 1 Year 2 Reporting of Cash Flows Total Year 1 Year 2 26 amounts given in instructions, do not grade 29 30 I B C D E G H I J FINANCIAL STATEMENTS a AWN Year 1 90,000 45,000 45,000 Year 2 100,000 50,000 50,000 Income Reporting Total 190,000 95,000 95,000 Key: formula required manual entry total points 13 cells in column B + C 6 cells in column B + C 19 cells worth 5.26 pts each Reporting of Equipment Income Statement 6 Mowing revenue 7 Operating expenses except depreciation 8 Income before depreciation and taxes 9 Depreciation expense (Straight-line) 10 Operating income 11 Gain (loss) on sale of equipment 12 Income before taxes 13 Income tax expense (30%) 14 Net income 15 16 Balance Sheet - Assets 18 Equipment 19 Accumulated depreciation 20 Book value 21 22 23 Statement of Cash Flows 24 Investing Activities 25 Purchase equipment Sell equipment 27 Operating Activities 28 Income taxes paid 17 Year 1 Year 2 Reporting of Cash Flows Total Year 1 Year 2 26 amounts given in instructions, do not grade 29 30