MBA 6315 B1. Create the Statement of Cash Flows using the Indirect Method from the information provided. Include the required supplemental information regarding interest and taxes, and include any significant non-cash transactions (24 points-graded for accuracy and format, including Excel spreadsheet links). Assets Current Assets Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Hawaii Boarding, Inc. Balance Sheet December 31, 2021 and 2020 2021 2020 $ 569,809 $ 164,450 810,810 590 413,900 126,500 772,200 680 1,545,659 1,313,280 1 The company paid dividends to its shareholders at the end of 2019. You need to calculate the amount. 2 The company sold a building (warehouse) in 2021. The building had a historical cost of $240,000 and was sold for $250,000 in cash. See the journal entry for this transaction below. 3 The company purchased land for expansion. 4 The company invested in marketable securities with the intent of holding them long-term. They paid $195,000 for this investment. 5 The company sold an asset they were holding for sale for $18,600. 6 The company obtained a new warehouse valued at $420,000 through a 20-year finance lease agreement. They made a $40,000 cash principal payment on the first day of the lease term. The lease is being amortized over 20 years. 7 The company made a payment on their long term note. 8 Check Figures: Cash Provided by Operating Activities is $315,109. Cash Used for Investing Activities is ($70,400). Hawaii Boarding, Inc. Income Statement For the Years Ending December 31, 2021 and 2020 Property and Equipment Land 144,000 Buildings 1,534,000 1,774,000 Accumulated Depreciation-Buildings (268,450) Equipment 685,000 Accumulated Depreciation-Equipment (479,500) Net Property and Equipment 1,615,050 (266,100) Sales Revenue 685,000 Cost of Goods Sold (411,000) Gross Profit 1,781,900 $ 2019 2,119,803 (1,271,882) 847,921 2018 $ 2,018,860 (1,211,316) 807,544 Operating (Income) Expenses: Right-of-Use Asset Salaries and Wages Expense 357,853 344,090 ROU--Warehouse Net Right-of-Use Assets 399,000 399,000 Insurance Expense 3,540 4,080 Supplies Expense 7,650 9,771 Depreciation Expense 127,850 112,850 Other Assets Gain on Sale of Building (46,000) Investment in Marketable Securities 195,000 Total Operating Expenses 450,893 470,791 Assets Held for Sale Total Other Assets 195,000 18,600 18,600 Income from Operations 397,028 336,753 Total Assets $ 3,754,709 $ 3,113,780 Other Income and (Expenses): Dividend Income 4,875 Liabilities and Stockholders' Equity Interest Expense (32,464) (15,981) Current Liabilities Total Other Income and Expenses (27,589) (15,981) Accounts Payable Salaries and Wages Payable Interest Payable Taxes Payable Unearned Revenue $ 141,570 $ 19,791 128,700 21,990 Income Before Income Taxes 369,439 320,772 5,411 2,664 19,396 16,841 Tax Expense (77,582) (67,362) 20,900 207,067 19,000 189,195 Net Income $ 291,857 $ 253,410 Total Current Liabilities Long-term Liabilities Finance Lease Liability 380,000 Journal Entry for Sale of Building referred to in Item #2 above: Note Payable 431,600 456,600 Cash 250,000 Total Long-term Liabilities 811,600 456,600 Accumulated Depreciation 36,000 Building Total Liabilities 1,018,667 645,795 Gain on Sale of Building 240,000 46,000 Stockholders' Equity To record sale of building, removing Building and related Accumulated Depreciation from the Balance Sheet and recording the Gain on the Income Statement. Common Stock 680,000 Retained Earnings Total Stockholders' Equity 2,056,042 2,736,042 680,000 1,787,985 2,467,985 Total Liabilities and Stockholders' Equity $ 3,754,709 $ 3,113,780 B2. (1) Calculate the Operating Cash Flows to Net Sales Ratio; the Operating Income to Net Sales Ratio; and the Net Income to Net Sales Ratio; (2) Calculate the Operating Cash Flow on Total Assets Ratio and the Return on Total Assets Ratio. Be sure to use Average Total Assets in your denominator for these last two ratios (10 points-graded for accuracy and format, including Excel spreadsheet links). Module 4 EXCE RBOOK Assignment MBA 6315 B1. Create the Statement of Cash Flows using the Indirect Method from the information provided. Include the required supplemental information regarding interest and taxes, and include any significant non-cash transactions (24 points-graded for accuracy and format, including Excel spreadsheet links). Assets Current Assets Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Property and Equipment Hawaii Boarding, Inc. Balance Sheet December 31, 2021 and 2020 2020 2021 $ 569,809 164,450 $ 810,810 590 1,545,659 413,900 126,500 772,200 680 1,313,280 1 The company paid dividends to its shareholders at the end of 2019. You need to calculate the amount. 2 The company sold a building (warehouse) in 2021. The building had a historical cost of $240,000 and was sold for $250,000 in cash. See the journal entry for this transaction below. 3 The company purchased land for expansion. 4 The company invested in marketable securities with the intent of holding them long-term. They paid $195,000 for this investment. 5 The company sold an asset they were holding for sale for $18,600. 6 The company obtained a new warehouse valued at $420,000 through a 20-year finance lease agreement. They made a $40,000 cash principal payment on the first day of the lease term. The lease is being amortized over 20 years. 7 The company made a payment on their long term note. 8 Check Figures: Cash Provided by Operating Activities is $315,109. Cash Used for Investing Activities is ($70,400). Hawaii Boarding, Inc. Income Statement For the Years Ending December 31, 2021 and 2020 B2. (1) Calculate the Operating Cash Flows to Net Sales Ratio; the Operating Income to Net Sales Ratio; and the Net Income to Net Sales Ratio; (2) Calculate the Operating Cash Flow on Total Assets Ratio and the Retum on Total Assets Ratio. Be sure to use Average Total Assets in your denominator for these last two ratios (10 points-graded for Land 144,000 Buildings 1,534,000 1,774,000 Accumulated Depreciation-Buildings Equipment (268,450) 685,000 Accumulated Depreciation Equipment (479,500) Net Property and Equipment 1,615,050 [266,100) 685,000 (411,000) 1,781,900 Sales Revenue $ Cost of Goods Sold Gross Profit 2019 2,119,803 [1,271,882) 847,921 2018 $ 2,018,860 (1,211,316) 807,544 Operating (Income) Expenses: Right of Use Asset Salaries and Wages Expense 357,853 344,090 ROU-Warchouse Net Right of Use Assets 399,000 399,000 Insurance Expense 3,540 4,080 Supplies Expense 7,650 9,771 Depreciation Expense 127,850 112,850 Other Assets Gain on Sale of Building 146,000) Investment in Marketable Securities 195,000 Total Operating Expenses 450,893 470,791 Assets Held for Sale Total Other Assets 195,000 18,600 18,600 Income from Operations 397,028 336,753 Total Assets $ 3,754,709 $ 3,113,780 Other Income and (Expenses): Dividend Income 4,875 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Salaries and Wages Payable Interest Payable Interest Expense 132,464) (15,981) Total Other Income and Expenses [27,589) (15,981) $ 141,570 $ 128,700 19,791 21,990 Income Before Income Taxes 369,439 320,772 5,411 2,664 Taxes Payable 19,396 16,841 Tax Expense 177,582) (67,362) Unearned Revenue 20,900 19,000 207,067 189,195 Net Income $ 291,857 $ 253,410 Total Current Liabilities Long term Liabilities Finance Lease Liability 380,000 Note Payable 431,600 Total Long term Liabilities 811,600 456,600 456,600 Total Liabilities 1,018,667 645,795 Stockholders' Equity Common Stock 680,000 680,000 Retained Earnings 2,056,042 1,787,985 Total Stockholders' Equity 2,736,042 2,467,985 Total Liabilities and Stockholders' Equity $ 3,754,709 $ 3,113,780 Journal Entry for Sale of Building referred to in Item #2 above: Cash Accumulated Depreciation Building Gain on Sale of Building 250,000 36,000 240,000 46,000 To record sale of building, removing Building and related Accumulated Depreciation from the Balance Sheet and recording the Gain on the Income Statement