Innovation Electronics, Inc. has provided you with the year-end Income Statement and Balance Sheet. The Controller has asked you to prepare the Statement of Cash Flows for the same year ended December 31. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. Multi-Tab Cell Reference: Allows you to refer to data from another cell in a separate tab in the worksheet. When using the multi-tab cell reference, type the equal sign first, then click on the other tab and then click on the cell you want to reference. The syntax of a multi-tab cell reference looks different than a normal cell reference, since it includes the tab name surrounded by apostrophes and also an exclamation point before the cell location. In the Excel Simulation below, if =Income Statement!B15" is entered in a blank cell on the Sheet1 tab, the formula outputs the result from cell B15 in the Income Statement tab, which is 16,000 in this example. Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add), - (minus sign to subtract), * (asterisk sign to multiply), and / (forward slash to divide). In the Excel Simulation below, if "=B16+B17" is entered in a blank cell on the Balance Sheet tab, the formula adds the values from those cells and outputs the result, which is 411,500 in this example. If using the other math symbols, the result is an appropriate answer for its function. SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. In the Excel Simulation below, if =SUM(B16,B17,818)" is entered in a blank cell on the Balance Sheet tab, the formula outputs the result of adding those three separate cells, or 294,000 in this example. Similarly, if =SUM(B16:B18)" is entered in a blank cell, the formula outputs the same result of adding those cells, except they are expresse as a range in the formula, which outputs 294,000 in this example. B D D E 4 5 4 INNOVATION ELECTRONICS, INC. 5 Income Statement 6 For the Year Ended December 31, 20X2 7 Net sales $ 2,430,000 8 Gain on sale of land 6,500 9 10 Total revenues 2,436,500 11 12 Expenses: 13 Cost of goods sold $ 1,565,000 14 Operating expenses 598,000 15 Depreciation expense 16,000 16 Interest expense 17,000 17 Income tax expense 63,000 18 19 Total expenses 2,259,000 20 21 Net income $ 177,500 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow and complete the statement of cash flows. Note: Additional information is included at the bottom of the statement. INNOVATION ELECTRONICS, INC. Balance Sheet At December 31 20X2 20X1 Assets Current assets: Cash $ 184,420 $ 25,740 Accounts receivable 68,700 83,000 Inventory 134,500 128,000 Prepaid insurance 2,980 4,560 Long-term assets: Investments 211,000 120,000 Land 208,500 255,000 Equipment 203,000 203,000 Accumulated depreciation (117,500) (101,500) Total assets $ 895,600 $ 717,800 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 26,500 $ 81,000 $ 26,500 $ 3,400 30,200 81,000 2,300 32,500 2 3 Liabilities and Stockholders' Equity 4 Current liabilities: 5 Accounts payable 6 Interest payable 7 Income tax payable 8 Long-term liabilities: 9 Notes payable 0 Stockholders' equity: 1 Common stock 2 Retained earnings 3 4 Total liabilities and stockholders' equity 255,000 242,000 273,000 307,500 230,000 130,000 N m w $ 895,600 $ 717,800 INNOVATION ELECTRONICS, INC. Statement of Cash Flows For the Year Ended December 31, 20X2 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Gain (on sale of land) Changes in current assets and current liabilities: Accounts receivable - Inventory Prepaid insurance Accounts payable Interest payable Income tax payable Net cash provided by (used in) operating activities B Cash Flows from Investing 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 36