inderect method

xtra Credit) 0 for Note: To complete the assignme INNOVATION ELECTRONICS, INC. Income Statement For the Year Ended December 31, 20X2 Net sales $ 2,430,000 Gain on sale of land 6,500 7 8 Total revenues 2,436,500 12 13 $ 14 Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense 1,565,000 598,000 16,000 17,000 63,000 Total expenses 2,259,000 21 Net income $ 177,500 Income Statement Balance Sheet Cash Flow ... READY Editin Paste B I U - - -AAlignment Number Conditional Format as Cell Formatting Table Styles Styles Cells - Clipboard Font 034 717800 00 nces 3 Note: Additional information is included at the bottom of the statement. INNOVATION ELECTRONICS, INC. Balance Sheet At December 31 20X2 2 0X1 Assets 9 Current assets: 10 Cash $ 184,420 $ 25,740 11 Accounts receivable 68,700 83,000 12 Inventory 134,500 128,000 Prepaid insurance 2,980 4,560 14 Long-term assets: 15 Investments 211,000 120,000 16 Land 208,500 255,000 Equipment 203,000 203,000 Accumulated depreciation (117,500) (101,500) 13 Total assets $ 895,600 $ 717,800 23 Liabilities and Stockholders' Equity 24 Current liabilities: 25 Accounts payable 26 Interest payable $ $ 26,500 3,400 81,000 2,300 Paste B I U . 3- A Cel Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font C34 X x 717800 26,500 $ 3,400 30,200 81,000 2,300 32,500 23 Liabilities and Stockholders' Equity 24 Current liabilities: 25 Accounts payable Interest payable 27 Income tax payable 28 Long-term liabilities: Notes payable 30 Stockholders' equity: Common stock Retained earnings 255,000 242,000 31 273,000 307,500 230,000 130,000 Total liabilities and stockholders' equity S 895,600S 717,800 36 Additional Information for 20X2: 37 1. Assume that all increases and decreases in long term assets, long term liabilities, 38 and common stock are a result of cash transactions. 39 2. Land costing $46,500 was sold, resulting in a gain of $6,500. No other 40 long-term assets were sold. 41 3. Additional long-term investments were purchased. 42 4. An additional long-term note payable was signed. No repayments on 43 notes were made. 44 5. Additional common stock was issued. 1 Required: 2 Complete the statement of cash flows (indirect method) shown below by using formulas that reference 3 data from the income statement and balance sheet (found by clicking the tabs at the bottom of this 4 worksheet. Note: Blank cells may be included in calculations. INNOVATION ELECTRONICS, INC. Statement of Cash Flows For the Year Ended December 31, 20X2 9 Cash Flows from Operating Activities: 10 Net income 11 Adjustments to reconcile net income to net cash 12 provided by operating activities: 13 Depreciation expense 14 Gain (on sale of land) 15 Changes in current assets and current liabilities: 16 Accounts receivable 17 Inventory 18 Prepaid insurance 19 Accounts payable 20 Interest payable 21 Income tax payable 22 Net cash provided by (used in) operating activities 1 23 24 Cash Flows from Investing Activities: 25 Purchase investments 25 Sale of land 27 Net cash provided by fused in) investing activities 29 Cash Flows from Financing Activities: issue common stock 31 Issue long term note Net cash provided by used in financing activities + ... Income Statement Balance Sheet Cash Flow READY Attempt(s) INNOVATION ELECTRONICS, INC. Statement of Cash Flows For the Year Ended December 31, 20X2 9 Cash Flows from Operating Activities: 10 Net income 11 Adjustments to reconcile net income to net cash 12 provided by operating activities: 13 Depreciation expense 14 Gain (on sale of land 15 Changes in current assets and current liabilities: 16 Accounts receivable 17 Inventory 18 Prepaid insurance 19 Accounts payable 20 Interest payable 21 Income tax payable 22 Net cash provided by used in operating activities 24 Cash Flows from Investing Activities: 25 Purchase investments 25 Sale of land 27 Net cash provided by used in investing activities 29 Cash Flows from Financing Activities: 30 Issue common stock 31 Issue long term note 32 Net cash provided by used in financing activities 33 Net Increase (decrease) in cash 34 Cash at beginning of the period 35 Cash at end of the period ... Income Statement Balance Sheet Cash Flow READY Attempt(s)