Prepare a statement of cash flows using the indirect method.
Use the income statement and balance sheet to prepare a statement of cash flows using the indirect method
(EVERYTHING MUST BE A FORMULA FOR THE CELLS, NOT THE ACTUAL NUMBER)
the yellow cells are the ones that need to be filled in.
Note: To complete the assignment, go to the worksheet tab labeled Cash Flow and complete the statement of cash flows. INNOVATION ELECTRONICS, INC. Income Statement For the Year Ended December 31, 20X2 7 Net sales 2,430,000 Gain on sale of land 6,500 Total revenues 2,436,500 1 2 Expenses: 3 1,565,000 Cost of goods sold Operating expenses Depreciation expense Interest expense 4 598,000 16,000 17,000 63,000 5 6 Income tax expense 8 Total expenses 9 2,259,000 Net income $ 1 177,500 2 INNOVATION ELECTRONICS, INC. Balance Sheet At December 31 20X2 20X1 Assets Current assets: 184,420$ $ Cash 25,740 83,000 Accounts receivable 68,700 128,000 4,560 134,500 Inventory Prepaid insurance Long-term assets: 2,980 211,000 Investments 120,000 208,500 255,000 203,000 (101,500) Land Equipment Accumulated depreciation 203,000 (117,500) 895,600$ Total assets $ 717,800 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: $ 81,000 26,500 2,300 32,500 3,400 30,200 28 Long-term liabilities: Notes payable Stockholders' equity: 255,000 29 242,000 30 230,000 31 Common stock 273,000 Retained earnings 32 307,500 130,000 33 Total liabilities and stockholders' equity $ 895,600$ 34 717,800 35 36 Additional Information for 20X2: 371. Assume that all increases and decreases in long term assets, long term liabilities, 38 and common stock are a result of cash transactions 39 2. Land costing $46,500 was sold, resulting in a gain of $6,500. No other 40long-term assets were sold. purchased signed. No repayments on 41 3. Additional long-term investments were 42 4. An additional long-term note payable was 43 notes were made. 44 5. Additional common stock was issued. 45 Required: Complete the statement of cash flows (indirect method) shown below by using formulas that reference data from the income statement and balance sheet (found by clicking the tabs at the bottom of this worksheet. Note: Blank cells may be included in calculations 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 Cash Flows from Investing Activities: 5 Purchase investments Sale of land Net cash provided by (used in) investing activities Cash Flows from Financing Activities: Issue common stock Issue long term note Net cash provided by (used in) financing activities Net increase (decrease) in cash Cash at beginning of the period 5 Cash at end of the period
