Prepare a statement of cash flows using the indirect method.

1. Use the income statement and balance sheet to prepare a statement of cash flows using the indirect method.

Prepare a statement of cash flows using the indirect method - Excel ? - X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri I -11 -A I - A % 1 D Alignment Number Conditional Format as Cell Formatting Table Styles # Editing Paste B U - Cells Clipboard F Styles A1 for Note: To complete the assignment, go to the worksheet tab labeled Cash Flow E F G H B C D 1 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow 2 and complete the statement of cash flows. INNOVATION ELECTRONICS, INC. Income Statement For the Year Ended December 31, 20X2 Net sales $ 2,430,000 Gain on sale of land 6,500 7 10 Total revenues 2,436,500 12 13 $ Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense 1,565,000 598,000 16,000 17,000 63.000 Total expenses 2,259,000 Net income $ 177,500 ... Income Statement Balance Sheet Cash Flow ... | READY H [F] I - + Hint -+ 100% Show Me Attempt(s) 5 ? - X FILE Sign In 1. . Prepare a statement of cash flows using the indirect method - Excel HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri |11 A = % D D D B IU- - - A - Alignment Number Conditional Format as Cell Cells Formatting Table Styles Font Styles M Editing Paste Clipboard A1 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow c D E F 1 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow 2 and complete the statement of cash flows. 3 Note: Additional information is included at the bottom of the statement. INNOVATION ELECTRONICS, INC. Balance Sheet At December 31 20X2 2 0X1 8 Assets 9 Current assets: Cash $ 184,420 $ 25,740 Accounts receivable 68,700 83,000 Inventory 134,500 128,000 13 Prepaid insurance 2,980 4,560 Long-term assets: 15 Investments 211,000 120,000 16 Land 208,500 255,000 Equipment 203,000 203,000 Accumulated depreciation (117,500) (101,500) 11 12 17 20 Total assets $ 895,600 $ 717,800 23 Liabilities and Stockholders' Equity 24 Current liabilities: 25 Accounts payable $ ... Income Statement Balance Sheet 81,000 26,500 Cash Flow $ ... + O U - READY Attempt(s) + 100% Show Me Hint X H ). Prepare a statement of cash flows using the indirect method - Excel ? X - Sign In FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW % Calibri B IU - 11 J A A = % Alignment Number z Cells # Editing Paste Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A1 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow D E F G - 25 $ B 26,500 3,400 30,200 $ C 81,000 2,300 32,500 28 29 Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 255,000 242,000 273,000 307,500 230,000 130,000 34 Total liabilities and stockholders' equity $ 895,600 $ 717,800 36 Additional Information for 20X2: 37 1. 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 40 long-term assets were sold. 41 3. Additional long-term investments were purchased. 42 4. An additional long-term note payable was signed. No repayments on 43 notes were made. 44 5. Additional common stock was issued. 1 ... Income Statement Balance Sheet Cash Flow ... 1 READY | H || || - + 100% Show Me Attempt(s) Hint Prepare a statement of cash flows using the indirect method - Excel ? X - Sign In FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Paste B I U - A Alignment Number Editing Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A2 Complete the statement of cash flows (indirect method) shown below by using . 1 Required: 2 Complete the statement of cash flows (indirect method) shown below by using formulas that reference 3 data from the income statement and balance sheet (found by clicking the tabs at the bottom of this 4 worksheet. Note: Blank cells may be included in calculations. INNOVATION ELECTRONICS, INC. Statement of Cash Flows For the Year Ended December 31, 20X2 9 Cash Flows from Operating Activities: 10 Net income 11 Adjustments to reconcile net income to net cash 12 provided by operating activities: 13 Depreciation expense 14 Gain (on sale of land) 15 Changes in current assets and current liabilities: 16 Accounts receivable 17 Inventory 18 Prepaid insurance 19 Accounts payable 20 Interest payable 21 Income tax payable 22 Net cash provided by (used in) operating activities 24 Cash Flows from Investing Activities: ... Income Statement Balance Sheet Cash Flow ... + e O -- READY Attempt(s) + 100% Show Me Hint Font XH. Prepare a statement of cash flows using the indirect method - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11 A A = % D D Paste B I U - 9 A - Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Clipboard Styles A2 X fx Complete the statement of cash flows (indirect method) shown below by using B C D E F 19 Accounts payable 20 Interest payable 21 Income tax payable 22 Net cash provided by (used in) operating activities 24 Cash Flows from Investing Activities: 25 Purchase investments 26 Sale of land 27 Net cash provided by (used in) investing activities 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 ... Income Statement Balance Sheet Cash Flow | | | | - READY Attempt(s) - Hint + 100% Show Me