The yellow cells are where each answer goes.

INNOVATION ELECTRONICS, INC. Income Statement For the Year Ended December 31, 20X2 Net sales $ 2,430,000 Gain on sale of land 6,500 Total revenues 2,436,500 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 20X1 INNOVATION ELECTRONICS, INC. Balance Sheet At December 31 20X2 Assets Current assets: Cash $ 184,420 $ Accounts receivable 68,700 Inventory 134,500 Prepaid insurance 2,980 Long-term assets: Investments 211,000 Land 208,500 Equipment 203,000 Accumulated depreciation (117,500) 25,740 83,000 128,000 4,560 120,000 255,000 203,000 (101,500) Total assets $ 895,600 $ 717,800 $ 26,500 $ 3,400 30,200 81,000 2,300 32,500 Liabilities and Stockholders' Equity Current liabilities: 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 Total liabilities and stockholders' equity $ 895,600 $ 717,800 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 $ 177,500 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 16,000 Gain (on sale of land) Changes in current assets and current liabilities: Accounts receivable 14,300 Inventory (6,500) Prepaid insurance 1,580 Accounts payable (54,500) Interest payable 1,100 Income tax payable (2,300) Net cash provided by (used in) operating activities Cash Flows from Investing Activities: 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 Cash at end of the period