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

Comparative balance sheets for Cincinnati Health Club are presented below.

Cincinnati Health Club

Balance Sheets

Jan. $1$ Dec. $31$

ASSETS

Current assets:

Cash $$9,200$ $$5,200$

Accounts receivable $8,90010,400$

Inventory $18,50019,700$

Total current assets $$36,600$ $$35,300$

Property, plant, and equipment:

Building $$490,000$ $$490,000$

Equipment $270,000281,000$

$$760,000$ $$771,000$

Accumulated depreciation $(110,000)(138,000)$

Net property, plant, and equipment $650,000633,000$

Total assets $$686,600$ $$668,300$

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable $$36,000$ $$55,100$

Salaries payable $11,7009,600$

Income taxes payable $9,9001,000$

Total current liabilities $$57,600$ $$65,700$

Long$-$term liabilities:

Bonds payable $400,000350,000$

Total liabilities $$457,600$ $$415,700$

Equity:

Common stock $$150,000$ $$190,000$

Retained earnings $79,00062,600$

Total equity $229,000252,600$

Total liabilities and equity $$686,600$ $$668,300$

Additional Information:

Cincinnati Health Club reported net income of $$2,700$ for the year.

No buildings or equipment were sold during the year. Equipment was purchased for $$11,000$ cash.

Depreciation expense was $$28,000.$

Bonds payable of $$50,000$ were issued for cash during the year.

Common stock of $$40,000$ was issued during the year.

Cash dividends of $$19,100$ were declared and paid during the year.

Required:

$1.$ Using the data above and Exhibit $10$ as a guide, create a spreadsheet to prepare a statement of cash flows.

$2.$ Using your spreadsheet, construct the Statement of Cash Flows below. Assume Cincinnati Health Club uses the indirect method. Use a minus sign to enter cash outflows.

Cincinnati Health Club

Statement of Cash Flows

For the year ending December $31$

Cash flows from operating activities:

$$-$ Select $-$

Adjustments to reconcile net income to net cash flow from operating activities:

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

blank

$$-$ Select $-$

Cash flows from investing activities:

$$-$ Select $-$

$-$ Select $-$

Cash flows from financing activities:

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$$-$ Select $-$

Cash, Jan. $1$ fill in the blank $33$

Cash, Dec. $31$ $fill in the blank $34$