Resource:ABC Financial Data Excelspreadsheet, ABC Supplemental Data,and Adjusted Balance Sheet and Income Statement from the Week 4 individual assignment

Preparethe Direct and Indirect Statements of Cash Flow using the Adjusted Balance Sheet and Income Statement from the Week 4 Individual Assignment.

Submitthe Direct and Indirect Cash Flow Statements in a MicrosoftExcelspreadsheet.

Week #4With the general data provided the following Financial Statements for ABC Company: On January 1, 2013, ABC Company purchased a 10% bond having a maturity value of $600,000, for $647,912.52. The bond provides the bondholder with an 8% yield. The bond is dated January 1, 2013 and mature January 1, 2018, with interest receivable December 31, each year. The company uses the effective-interest method to allocate unamortized discount or premium. Interest paid $600,000 x 10% Date 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 Effective Interest Interest rate 8% 8% 8% 8% 8% Interest Expense 51,833.00 51,179.64 50,474.01 49,711.93 48,888.89 Amortization of premium Bond carrying amount 647,912.52 639,745.52 630,925.16 621,399.18 611,111.11 600,000.00 8,167.00 8,820.36 9,525.99 10,288.07 11,111.11 647,912.52 1-Jan-13 Dr. Bond Cr. Cash 647,912.52 51,833.00 31-Dec-13 Dr. Cash Cr. Interest Revenue 51,833.00 8,167.00 31-Dec-13 Dr. Interest revenue Cr. Bond 8,167.00 On January 1, 2013, ABC Company signed a 6-year, noncancelable lease for a Truck. The terms of the lease called for ABC Company to make annual payments of $10,000 at the beginning of each year, starting January 1, 2013. The truck has an estimated useful life of 7 years and zero residual value. The truck reverts to the lessor at the end of the lease term. ABC Company uses the straight-line method of depreciation for all of its assets. ABC Company's incremental borrowing rate is 9%, and the lessor's implicit rate is unknown. Interest rate (Annual Percentage) Date Annual Lease Payment 1/1/2013 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 Interest (9%) on Liability 4,500.00 4,005.00 3,465.45 2,877.34 2,236.30 Reduction of Lease Liability 10,000.00 5,500.00 5,995.00 6,534.55 7,122.66 7,763.70 Lease Liability Annual Lease Payment 60,000.00 50,000.00 44,500.00 38,505.00 31,970.45 24,847.79 17,084.09 60,000.00 1-Jan-13 Dr. Leased Vehicle Cr. Lease Liability 60,000.00 31-Dec-13 Dr. lease Liability Cash 60,000.00 31-Dec-13 Interest Expense Lease Liability 10,000.00 60,000.00 10,000.00 ABC Company is having financial difficulty an has requested the bank restructure its $4 million note outstanding. The current note has 5 remaining years and pays an interest rate of 10%. The current market rate for a loan of this nature is 12%. ABC's note was issued at face value. The bank has agreed to accept land in exchange for relinquishing is claim on this note. The land has a book value of land is $2.95 million with a fair value of $3.5 million. (do not include the restructure date in your updated statements) Prepare the restructure Journal Entry. 4,000,000.00 Dr. Note Payable Cr. Gain on Restructure Cr. Gain on Disposal of land Cr. Land 3,650,000.00 55,000.00 295,000.00 ABC Company Consolidated Balance Sheet For the Year Ended December 31, 2013 2013 2012 ASSETS: Current Assets: Cash and Cash Equivalents Receivables, net Inventory Inventory Correction Other Current Assets Total Current Assets Property and Equipment, at cost Less: Accumulated Depreciation and Amortization Accumulated depreciation correction Net Property and Equipment Goodwill 3,070,584.48 1,398.00 11,057.00 1,285.00 895.00 3,085,219.48 2,494.00 (3,068,090.48) 1,413.00 (15.00) 11,512.00 (455.00) 900.00 (5.00) 16,319.00 101,522.00 (15,716.00) (1,505.00) 84,301.00 38,491.00 (17,473.00) 21,018.00 1,289.00 1,046.00 1,757.00 9.00% 10,000.00 Annuity due 6.00000 639,745.52 690.00 3,811,245.00 473.00 38,856.00 Current Liabilities: Accounts Payable Lease Liability Accrued Salaries and Related Expenses Sales Taxes Payable Deferred Revenue Income Taxes Payable Current Installments of Long-Term Debt Other Accrued Expenses Total Current Liabilities: 5,797.00 50,000.00 1,428.00 396.00 1,337.00 12.00 33.00 1,746.00 60,749.00 5,192.00 1,200.00 472.00 1,262.00 (107.00) (783.00) 1,794.00 9,030.00 Long-Term Debt, excluding current installments Other Long-Term Liabilities Deferred Tax Liability Total Liabilities: 14,691.00 2,042.00 514.00 77,996.00 9,475.00 2,029.00 545.00 21,079.00 Common Stock Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income Treasury Stock Total Stockholders' Equity 88.00 8,402.00 3,743,907.00 46.00 (19,194.00) 3,733,249.00 ### 7,948.00 20,038.00 397.00 (10,694.00) 17,777.00 Total Liabilities and Stockholders' Equity 3,811,245.00 38,856.00 Bond Deferred Tax Asset Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY: STOCKHOLDERS' EQUITY: ABC Company Income Statement For the Year Ended December 31, 2013 2013 2012 NET SALES Cost of Goods Sold GROSS PROFIT 78,812.00 51,422.00 27,390.00 74,754.00 48,912.00 25,842.00 Operating Expenses: Selling, General and Administrative Depreciation and Amortization Total Operating Expenses 16,597.00 1,627.00 18,224.00 16,508.00 1,568.00 18,076.00 9,166.00 7,766.00 (51,833.00) (3,686,833.00) 711.00 (3,737,955.00) (87.00) 632.00 545.00 3,747,121.00 7,221.00 (3,082.00) (2,686.00) 3,744,039.00 4,535.00 OPERATING INCOME Interest and Other (Income) Expense: Bond Revenue Interest and Investment Income Interest Expense Interest and Other, net EARNINGS BEFORE PROVISION FOR INCOME TAXES Income Taxes NET INCOME 605.00 228.00 75.00 119.00 (48.00) 13.00 (31.00) 2013 Cash and Cash Equivalents Receivables, net Inventory Other Current Assets Property and Equipment, at cost Accumulated Depreciation and Amortization Goodwill Deferred Tax Asset Accounts Payable Accrued Salaries and Related Expenses Sales Taxes Payable Deferred Revenue Income Taxes Payable Current Installments of Long-Term Debt Other Accrued Expenses Long-Term Debt, excluding current installments Other Long-Term Liabilities Deferred Tax Liability Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income Treasury Stock Common stock Net Sales Cost of Sales Selling, General and Administrative Depreciation and Amortization Interest and Investment Income Interest Expense Provision for Income Taxes Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Other Comprehensive Income Dividends Tax rate Shares Issued Under Employee Stock Plans Tax Effect of Stock-Based Compensation Restricted Stock Repurchases of Common Stock 4,960.00 1,398.00 2012 (12.00) (10.00) (2,243.00) 40% 103.00 123.00 228.00 (8,500.00) 2,494.00 1,413.00 11,512.00 900.00 38,491.00 (17,473.00) 1,046.00 473.00 5,192.00 1,200.00 472.00 1,262.00 (107.00) (783.00) 1,794.00 9,475.00 2,029.00 545.00 7,948.00 20,038.00 397.00 (10,694.00) 88.00 74,754.00 48,912.00 16,508.00 1,568.00 (87.00) 632.00 (2,686.00) 100.00 5.00 (1.00) (1,743.00) 40% 678.00 82.00 222.00 (4,000.00) 4,523.00 6,739.00 (1,332.00) (987.00) (1,028.00) (275.00) (12.00) (1,389.00) (206.00) 88.00 5,222.00 (1,289.00) (8,546.00) 241.00 (2,243.00) (37.00) 4,356.00 6,038.00 (1,276.00) (905.00) (1,121.00) (204.00) (10.00) (1,312.00) (170.00) 50.00 (32.00) (3,984.00) 784.00 (1,743.00) (59.00) 895.00 36,033.00 (15,684.00) 1,289.00 88.00 5,797.00 1,428.00 396.00 1,337.00 12.00 33.00 1,746.00 14,691.00 2,042.00 8,402.00 23,180.00 46.00 (19,194.00) 88.00 78,812.00 16,597.00 1,595.00 (12.00) 711.00 (3,082.00) Additional Info: Cash Sales Collections on Receivables Purchases Wages Payments to Suppliers Tax Payments Interest payments Capital Expenditures Payments for Businesses Acquired Proceeds from Sales of Property and Equipment Proceeds from Long-Term Borrowings Repayments of Long-Term Debt Repurchases of Common Stock Proceeds from Sales of Common Stock Cash Dividends Paid to Stockholders Other Financing Activities