information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, Brown COMPANY Brown COMPANY Income Statement Comparative Balance Sheets or Current Year Ended December 3 At Decem Current Year Prior Year Sales $ 582,500 Assets Cost of goods sold 285,000_Cash ...... $ 49,800 $ 73,500 Gross profit .. 297,500 Accounts 65,810 50,625 Operating expenses $ 132,400 Inventory 275,656 251,800 Depreciation expens 20,750 153,150 Prepaid ex 1,250 1,875 Other gains (losses) Total Curi 392,516 377,800 Loss on sale of equipment (5,125) Equipmen 157,500 108,000 Income before taxes 139,225 Accum. D (36,625) (46,000) Income taxes expense 24,250 Total Asse $ 513,391 $ 439,800 Net income $ 114,975 Liabilities and Equity Additional Information on Current-Year Tran: Accounts $ 53,141 $ 114,675 a. The loss on the cash sale of equipment was $5,1Long-tern 75,000 54,750 b. Sold equipment costing $46,875, with accumul: Total liabi 128,141 169,425 for $11,625 cash. c. Purchased equipment costing $96,375 by payin: Equity a long-term notes payable for the balance. Common 162,750 150,250 d. Paid $46,125 cash to reduce the long-term note: Paid-in ca 37,500 0 e. Issued 2,500 shares of common stock for $20 caRetained 185,000 120,125 f. Declared and paid cash dividends of $50,100. Total liabi $ 513,391 $ 439,800 Complete the questions below. Show your work to each question in the corresponding tabs in this Excel State your name in the highlighted cell on each sheet with your solution. Save this Excel workbook using the following naming convention: Excel Projectl-Cash Flows_LastNam The form and presentation of your work contribute towards your grade Submit the completed workbook via Canvas by 11:59 pm on 7/31/21. Required: 1 Prepare a cash flow worksheet to aid in the preparation of the statement of cash flows using the indir Refer to the information reported about Brown Company above and the following list of transactions Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the a. Net incig. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,62: b. Accour h. Purchased equipment costing $96,375 by paying $30,000 cash and c. Invento (i) by signing a long-term notes payable for the balance. d. Prepaid j. Paid $46,125 cash to reduce the long-term notes payable. e. Accoun k. Issued 2,500 shares of common stock for $20 cash per share. f. Depreci 1. Declared and paid cash dividends of $50,100. 2a. Prepare a complete statement of cash flows using the indirect method for the current year. Disclose : 2b. Analyze and discuss the statement of cash flows prepared in part 2a, giving special attention to the w 3 Prepare a complete statement of cash flows using the direct method. Disclose any noncash investing
