Requirements: You are to complete, in good form, a Statement of Cash Flows for DuLang Industries for the Year Ended December 31, 2019, using Excel. Good form means the statement must use proper headings, titles, and dates. Underlines, dollar signs, and double underlines where appropriate, please. Use Excel to do the math for you. When you can use either cell references or formulas. Typing in numbers when you are able to use cell references or formulas will result in a loss of points. In the worksheet, I have added a "Difference Column" which serves as a starting point for your assignment. Statement of Cash Flows The five steps used to prepare the statement of cash flows by the indirect method are: Step 1: Complete the cash flows from operating activities section using net income and adjusting for increases or decreases in current assets (other than cash) and current liabilities. Also, adjust for gains or losses on long-term assets and non-cash expenses such as depreciation expense. Step 2: Complete the cash flows from investing activities section by reviewing the long-term assets section of the balance sheet. Step 3: Complete the cash flows from financing activities section by reviewing the long-term liabilities and equity sections of the balance sheet. Step 4: Compute the net increase or decrease in cash during the year. The change in cash is the key reconciling figure for the statement of cash flows and must match the change in cash reported on the comparative balance sheet. Step 5: Prepare a separate schedule reporting any non-cash investing and financing activities. +- Cash Flows from Operating Activities +/-Net income or net loss Adjustments to reconcile net income to net cash provided by operating activities + Depreciation/amortization +/- Gains/losses on sales of long term assets +/- Increases/Decreases in current assets other than cash +/- Increases/Decreases in current liabilities = Net cash provided by (used for) operating activities +/- Cash Flows from Investing activities +Cash received from sales of long term assets -Acquisitions of long term assets =Net cash provided by (used for) investing activities +/- Cash flows from Financing activities +Cash receipts from sale of stock +/- Cash receipts from sale or cash paid purchase of treasury stock +Cash receipts from issuance of bonds or notes payable -Cash payments to retire bonds payable or pay notes payable -Cash payments of dividends =Net cash provided by (used for) financing activities =Net increase (decrease) in cash (total all three activities) An increase in a current asset other than cash causes a decrease in cash. A decrease in a current asset other than cash causes an increase in cash. An increase in a current liability causes an increase in cash. A decrease in a current liability causes a decrease in cash. Assets Cash Accounts receivable Inventories Investments Land Equipment Accumulated depreciation Liabilities and Stockholders Equity Accounts payable Salaries payable Dividends payable Common stock, $1 par DuLang Industries Comparative Balance Sheet December 31, 2019 and 2018 Paid in capital in excess of par, common stock Retained earnings Sales Cost of goods sold Dulang Industries Income Statement Year Ended December 31, 2019 Gross Profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses Operating income Other income: Gain on sale of investments Income before income tax Income tax expense Net income 31-Dec-19 31-Dec-18 Difference 464,100 395,800 163,200 145,700 395,000 367,900 120,000 160,000 695,500 (194,000) 1,683,800 575,500 (168,000) 1,436,900 228,700 210,500 16,500 21,400 14,000 10,000 75,000 60,000 265,000 175,000 1,084,600 960,000 1,683,800 1,436,900 1,580,500 957,300 623,200 26,000 329,400 355,400 267,800 12,000 279,800 99,200 180,600 Additional information: a. Equipment and land were acquired for cash b. There were no disposals of equipment during the year c. The investments were sold for $132,000 cash d. Common stock was issued for cash e. There was a $56,000 debit to retained earnings for cash dividends declared