Instructions: 1. Calculate the year-over-year difference in column D, then whether the change was an "increase" or "decrease" (see Cash example). 2. Using the Indirect Method for Operating Activities, complete the Statement of Cash Flows at the bottom of the file. input cells Additional Data: Assume all transactions are for cash unless otherwise noted. Equipment in PPE is sold for $13,000 cash. 13000 - Cost of equipment sold: 20,000 - Accumulated depreciation on equipment sold 7,000 A patent was exchanged for land. 80,000 Dividends declared and paid in current year 27,000 Cash was used to pay for structural improvements to the building. Accounts payable relate to merchandise purchases. Balance Sheets as of Dec. 31st Current Previous Difference Increase or Year Year Decrease? Assets Current Assets Cash 67,000 25,000 42,000 increase Accounts Receivable 64,000 49,000 Merchandise Inventory 85,000 66,000 Total current assets 216,000 140,000 Income statement Sales Revenue Cost of goods sold Gross Margin Current Year 825,000 530,000 295,000 179,000 6,000 29,000 214,000 81,000 Long-term Assets Patent Land Property, Plant & Equipment (PPE) Less: Accumulated Depreciation Total long-term assets Operating expenses Salaries expense Amortization expense Depreciation expense Total expenses Income from operations Other revenue/expense Gain on exchange of land for patent Income tax expense Interest expense Net Income 74,000 0 117,000 160,000 441,000 353,000 (122,000) 100,000) 510,000 413,000 37,000 25,000 18,000 75,000 Total Assets 726,000 553,000 Liabilities and Shareholder's Equity Current Liabilities Accounts Payable - merchandise suppliers Income Taxes Payable Interest payable Total current liabilities 36,000 7,000 13,000 56,000 26,000 12,000 8,000 46,000 190,000 246,000 75,000 121,000 Bonds Payable (due in 10 years) Total liabilities Shareholder's equity Common stock $10 par Retained Earnings Total stockholder's equity Total Liabilities plus stockholder's equity 350,000 130,000 480,000 726,000 350,000 82,000 432,000 553,000 Good Student Company Statement of Cash Flow (Indirect Method) December 31, 20XX Operating Activities: Investing Activities: Financing Activities: Reconciliation