Lagoon Marine Company makes a variety of boating supplies. The controller is preparing its statement of cash flows for the most recent calendar year. A sample of the pivot table the controller prepared using Excel with the company’s general ledger data follows. This pivot table lists each specific general ledger account and the change in its balance from January 1 to December 31.

Using the pivot table and other information shown in the figure, answer the following questions.1. What information is needed to prepare the operating section of the statement of cash flows using the indirect method?2. What feature in Excel did the controller use to create the information in Box A?3. Describe the steps the controller used to create the information in Box A.4. In Excel, how would you use Box A to gather information for the operating section of the statement of cash flows (indirect method)?

Transcribed Image Text:

3 Row Labels 4 Accrued expenses 5 Accts Payable 6 Accts Receivable 7 Accum. Depreciation 8 Cash Sum of New Change (67,989) $ $ 15 Investments 16 LT bonds payable 17 LT notes payable 18 Preferred stock 19 Prepaid expenses 20 Property, Plant, Equip 21 Retained earnings 22 Wages payable 23 Grand Total Դ Դ Դ Դ Դ Դ Դ Դ Դ Դ Դ Դ Դ Դ Դ Դ Դ Դ Դ $ $ 9 Common stock 10 Current portion LT debt $ 11 Goodwill 12 Income tax payable $ 13 Interest payable 14 Inventory $ $ 542,350 (71,785) (421,856) 252,787 36,126 65,776 7,026 (83,564) 48,563 455,528 (425,783) (38,283) 111,630 7,151 46,473 2,217,198 1,451,079 (13,251) 4,119,176 Classification Current Asset Current Liability Long term Asset Long term Liability Stockholders' Equity Box A