a. Refer to Problem 2-41B (below). Use an Excel spreadsheet to construct the required financial statements. To complete Requirement b, use formulas where normal arithmetic calculations are made within the financial statements (in particular the statement of changes in stockholders' equity). The following accounts and balances were drawn from the records of Shearer Company at December 31, Year 2: Cash $22,100 $21,000 Accounts receivable Cash flow from operating act. 43,000 8,600 2,500 5,000 Beginning retained earnings Beginning common stock 47,200 5,500 Land Insurance expense Dividends Prepaid insurance Accounts payable Supplies 3,500 86,000 15,000 2,100 Service revenue Cash flow from financing act. Ending common stock Cash flow from investing act. Other operating expenses 9,000 14,500 Supplies expense Rent expense 1,000 3,500 (6,000) 59,000 Required Use the accounts and balances from Shearer Company to construct an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows (show only totals for each activity on the statement of cash flows). b. It is interesting to speculate about what would happen if certain operating results change for better or worse. After completing Requirement a, change certain account balances for each of the following independent operating adjustments. After each adjustment, notice how the financial statements would differ if the change in operations were to occur. After noting the effect of each adjustment, return the data to the original amounts in Problem 2-41A and then go to the next operating adjustment. At the end, return all numbers to the original balances noted above. Input the following table into the bottom of your excel worksheet, calculate the new amounts on the financial statements for the various operating changes listed: te manual Statements IUI te val uus upelamig udliges listeu. Original 1 2 3 4 5 Net income Total assets Total liabilities Total stockholders' equity Total liabilities & stockholders' equity Independent Operating Adjustments 1. Revenue and the related Accounts Receivable increased $10,000. 2. Revenue and the related Accounts Receivable decreased $10,000. 3. Operating Expenses and the related Accounts Payable decreased $400. 4. Operating Expenses and the related Accounts Payable increased $400. 5. Dividends paid decreased $500 and cash changed accordingly