Below you will find the comparative balance sheets for Daniels Consulting for December 31, 2017 and 2016.

Additional information includes:

a. Depreciation expense for the year, $1,616

b. Daniels Consulting had no disposal of plant assets during the year. Plant assets were acquired for cash.

c. Daniels Consulting issued a mortgage receiving cash of $825,000. Principal payments amounted to $25,862 during the year.

d. Net income for the year was $190,537.

e. Cash receipts from issuance of common stock totaled $115,000.

Requirements:

1. Calculate the answers for the "difference" column shown below.

2. Prepare the statement of cash flows using the indirect method of presentation (use 2nd tab). Use cell referencing. Format the cells appropriately. Use textbook example as illustration for formating if necessary

Daniels Consulting

Comparative Balance Sheet

December 31, 2017 and 2016

2017

2016

Difference

Assets

Current Assets:

Cash

$ 1,457,524

$ 31,700

Accounts Receivable

25,700

700

Office Supplies

2,150

50

Long-term Assets:

Plant Assets

84,800

4,800

Accumulated Depreciation - Plant Assets

(1,696)

(80)

Total Assets

$ 1,568,478

$ 37,170

Liabilities

Current Liabilities:

Accounts Payable

$ 7,300

$ 4,100

Salaries Payable

1,800

467

Unearned Revenue

-

1,600

Interest Payable

25,000

-

Long-term Liabilities:

Note Payable

500,000

-

Mortgage Payable

799,138

-

Total Liabilities

1,333,238

6,167

Stockholders' Equity

Common Stock, no par

115,240

240

Retained Earnings

120,000

30,763

Total Stockholders' Equity

235,240

31,003

Total Liabilities and Stockholders' Equity

$ 1,568,478

$ 37,170

PART 2

Daniels Consulting
Statement of Cash Flows
Year Ended December 31, 2016
Cash Flows from Operating Activities:
Net Income
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation Expense - Plant Assets
Increase in Accounts Receivable
Increase in Office Supplies
Increase in Accounts Payable
Increase in Salaries Payable
Decrease in Unearned Revenue
Increase in Interest Payable
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities
Cash Payment for Acquisition of Plant Assets
Cash Receipt from Disposal of Plant Assets
Net Cash Used for Investing Activites
Cash Flows from Financing Activities
Cash Receipt from Issuance of Mortgage Payable
Cash payments on Mortgage Principal
Cash Receipt from Issuance of Common Stock
Cash payment of dividends
Cash Receipt from Issuance of Notes Payable
Net Cash Provided by Financing Activities
Net Increase (Decrease) in Cash
Cash Balance, December 31, 2016
Cash Balance, December 31, 2017