Excel Homework #$3$

Winter $2024$

Name:$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Using the following information, complete an indirect method SCF in good form. The SCF should be presented in the worksheet labeled "Statement of Cash Flows".

This homework is worth a total of $10$ possible points $--8$ for the SCF and $2$ for appropriate use of Excel $($i$.$e$.,$ no amounts hard coded, use of formulas where possible and proper formatting$)$ within the SCF$.$

Tips:

$1)$ Follow the steps provided in class to create the SCF$.$

$2)$ Record the journal entry for the sale of equipment to determine the cash effect of this transaction

$3)$ If ending cash on the SCF doesn't equal ending cash per the Balance Sheet, you've made a mistake somewhere. To find the error, recheck your work once, then redo the problem if you can't find your error.

Hernandez Corp

Balance Sheet and Income Statement Data

$12/31/202512/31/2024$

Current Assets:

Cash $ $3,600$ $ $7,100$

Accounts Receivable $61,50051,000$

Inventory $44,80063,900$

Total Current Assets $109,900122,000$

PPE $165,200129,900$

Accumulated Depreciation $(35,200)(24,800)$

Land $70,60067,700$

Total Assets $ $310,500$ $ $294,800$

Current Liabilities:

Accounts Payable $ $47,800$ $ $39,800$

Wages Payable $10,0009,900$

LT Notes Payable $68,10078,800$

Total Liabilities $125,900128,500$

Stockholders' Equity:

Common Stock $130,000130,000$

Retained Earnings $54,60036,300$

Total Stockholders' Equity $184,600166,300$

Total Liabilities & Stockholders' Equity $ $310,500$ $ $294,800$

Sales Revenue $ $338,150$

Less Cost of Goods Sold $175,200$

Gross Profit $162,950$

Operating Expenses $(119,400)$

Operating Income $43,050$

Interest Expense $(11,300)$

Loss on Sale of Equipment $(1,400)$

Income Before Taxes $30,350$

Less Income Tax Expense $6,750$

Net Income $ $23,600$

Additional Information:

$1)$ The company sold equipment that had an original cost of $$20,100$

Amount equipment was depreciated at sale $60\%$

$2)$ There have been no sales of land during the year.

$3)$ Depreciation expense is included in operating expenses.

$4)$ There have been no additional borrowings under the long term note payable.

$5)$ There has been no repurchase of treasury stock.

$6)$ Dividends were declared and paid during $2025$