Instructions

$1$ Review the Comparative Balance Sheet and the additional information provided for this company.

$2$ Using an excel formula, calculate the change in the balances from $2019-2020.$

$3$ Add a column next to the change amount an indicate if this was an Increase or Decrease.

$4$ Add a column next to the Increase$/$Decrease Column and indicate if this account has a normal DR or CR balance.

$5$ Add a column next to the DR$/$CR column and indicate the section of the Cash Flow Statement where this item is presented $($Operating$,$ Investing, Financing$)$

$6$ You need to complete the data below the Cash Flow Statement in order to get information needed. For example, you need to rollforward Retained Earnings in order to Net Income.

$7$ Prepare a statement of cash flows using the indirect method in the highlighted section below. Add lines if necessary.

$8$ Use Formulas for any and all amounts coming from another location in the file. Use formulas for any and all math calculations. DO NOT use a calculator and then enter the number.

$9$ Hurricane damage is unusual in that part of the country.

$10$ You will use $3$ types of formulas in this project:

LINK: This is a formula that LINK the data from one location to another. For example, the Change in A$/$R on the Cash flow can be linked to the change in A$/$R in step $2.$

MATH: Do NOT use a calculator and then type in number. Any where you would add, subtract, multiply or divide, do that using excel formulas. You may use paper and calculator to double check your work.

SUM: In cases where you are adding, you may either use a math formula, adding up the cells $-$ or you may use the Auto Sum feature. Again, do NOT enter amounts you are calculating. Use a formula.

Equipment that had cost $$20,000$ and was $60\%$ depreciated at time of disposal was sold for $$2,000$

$$18,000$ of the long$-$term note payable was paid by issuing common stock.

Cash dividends paid were $$12,000.$

On January $1,20,$ the building was completely destroyed by a hurricane. Insurance proceeds on the building were $$245,000($net of $$22,000$ taxes$).$

Investments $($available$-$for$-$sale$)$ were sold at $$2,800$ below their cost. The company has made similar sales and investments in the past.

Cash was paid for the acquisition of equipment.

A long$-$term note for $$20,000$ was issued for the acquisition of equipment.

Interest of $$1,000$ and income taxes of $$23,600$ were paid in cash.

QUEEN CORPORATION

Statement of Cash Flows

For the Year Ended December $31,2020$

Cash Flows from operating activites:

Net Income