$($Appendix $11$B$)$ Using a Spreadsheet to Prepare a Statement of Cash Flows

Jane Bahr, a controller of Endicott & Thurston, provided the following balance sheet information:

Endicott & Thurston Associates

Balance Sheet

Jan. $1$

Dec. $31$

ASSETS

$\backslash$table$[[$Current assets:$],[$Cash$,,$$$14,000,,$$$2,000$

Accounts payable

Salaries payable

Total current liabilities

Long$-$term liabilities:

$\backslash$table$[[$Notes payable,$105,000,80,000],[$Bonds payable,$0,140,000],[,$$$365,000,]]$

Equity:

Common stock

Retained earnings

Total equity

Total liabilities and equity

Additional Information:

Computing equipment with a cost of $$250,000$ and accumulated depreciation of $$230,000$ was sold for $$5,000.$ New computing equipment was purchased for $$376,000.$

New office furniture was purchased at a cost of $$35,000.$

Depreciation expense was $$42,000.$

Investments costing $$20,000$ were sold for cash at a loss of $$2,000.$ Additional investments were purchased for $$31,000$ cash.

A $$25,000$ principal payment on the long$-$term note was made.

A portion of the cash needed to purchase computing equipment was secured by issuing bonds payable for $$140,000$ cash.

Net income was $$70,000$ and dividends were $$35,000.$

Required:

Using the data above and Exhibit $10$ as a guide, create a spreadsheet to prepare a statement of cash flows.

Using your spreadsheet, construct the Statement of Cash Flows below. Assume Endicott & Thurston use the indirect method. Use a minus sign when entering negative cash flows.

Endicott and Thurston Associates

Statement of Cash Flows

For the year ending December $31$

Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

$$

Cash flows from investing activities:

$$ $

$$

$$

$$

$$

Cash flows from financing activities:

$$

$$

$$