Income statement
Balance Sheet
A B D 1 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow 2 and complete the statement of cash flows. 3 4 5 6 INNOVATION ELECTRONICS, INC. Income Statement For the Year Ended December 31, 20X2 Net sales $ 2,430,000 Gain on sale of land 6,500 7 8 9 10 Total revenues 2,436,500 11 12 Expenses: 13 Cost of goods sold 14 Operating expenses 15 Depreciation expense 16 Interest expense 17 Income tax expense 18 19 Total expenses 20 21 Net income $ 1,565,000 598,000 16,000 17,000 63,000 2,259,000 $ 177,500 22 23 24 25 Income Statement Balance Sheet Cash Flow + 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 20X2 20X1 8 Assets 9 Current assets: 10 Cash $ 184,420 $ 25,740 11 Accounts receivable 68,700 83,000 12 Inventory 134,500 128,000 13 Prepaid insurance 2,980 4,560 14 Long-term assets: 15 Investments 211,000 120,000 16 Land 208,500 255,000 17 Equipment 203,000 203,000 18 Accumulated depreciation (117,500) (101,500) 19 Total assets $ 895,600 $ 717,800 21 20 22 23 24 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 25 26,500 $ 81,000 Income Statement Balance Sheet Cash Flow Use the income statement and balance sheet to prepare a statement of cash flows using the indirect method X 5 Prepare a statement of cash flows using the indirect method - Excel ? > FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11 - A A % M Paste B I U - Alignment Number Cells Editing Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A1 X Required: A F B D E i Required: 2 Complete the statement of cash flows (indirect method) shown below by using formulas that reference 3 data from the income statement and balance sheet (found by clicking the tabs at the bottom of this 4 worksheet. Note: Blank cells may be included in calculations. 5 6 INNOVATION ELECTRONICS, INC. 7 Statement of Cash Flows 8 For the Year Ended December 31, 20X2 9 Cash Flows from Operating Activities: 10 Net income 11 Adjustments to reconcile net income to net cash 12 provided by operating activities: 13 Depreciation expense 14 Gain (on sale of land) 15 Changes in current assets and current liabilities: 16 Accounts receivable 17 Inventory 18 Prepaid insurance 19 Accounts payable 20 Interest payable 21 Income tax payable 22 Net cash provided by (used in) operating activities 23 24 Cash Flows from Investing Activities: 25 Purchase investments 26 Sale of land 27 Net cash provided by (used in) investing activities 28 29 Cash Flows from Financing Activities: 30 Issue common stock 31 Issue long term note 32 Net cash provided by (used in) financing activities 33 Net increase (decrease) in cash 34 Cash at beginning of the period 35 Cash at end of the period
