Innovation Electronics, Inc. has provided you with the year end Income Statement Balance Sheet. The Controller has asked you to prepare the Statement of Cash Flows for the same year ended December 31. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.

INNOVATION ELECTRONICS, INC Income Statement For the Year Ended December 31, 20X2 Net sales Gain on sale of land S 2,430,000 6,500 Total revenues 2,436,500 Expenses: 1,565,000 Depreciation expense16,000 63,000 Cost of goods sold Operating expenses 598,000 17000_ Interest expense Income tax expense Total expenses 2,259,000 Net income $ 177,500 INNOVATION ELECTRONICS, INC Balance Sheet At December 31 20x2 20X1 Assets Current assets: 0 Cash 1Accounts receivable 2 Inventory 3 Prepaid insurance 4Long-term assets: 5 Investments 6 Land 184,420 S $ 184,420 $ 25,740 83,000 128,000 4,560 68,700 134,500 2,980 211,000 208,500 203,000 (117,500) 120,000 255,000 203,000 (101,500) 7Equipment 8 Accumulated depreciation 9 0 Total assets S 895,600 S 717,800 3 Liabilities and Stockholders' Equity 4 Current liabilities: 5 Accounts pavable 6 Interest payable 7 Income tax payable 8 Long-term liabilities: 9 Notes payable 0 Stockholders' equity: 1 Common stock 2 Retained earnings 3 4 Total liabilities and stockholders' equit $26,500 81,000 2,300 32,500 3,400 30,200 255,000 273,000 242,000 230,000 130,000 307,500 $895,600 $717,800 INNOVATION ELECTRONICS, INC. Statement of Cash Flows For the Year Ended December 31, 20X2 9 Cash Flows from Operating Activities: 0 Net income 1 Adjustments to reconcile net income to net cash 2 provided by operating activities: 3 Depreciation expense 4 Gain (on sale of land) 5 Changes in current assets and current liabilities: 6 Accounts receivable 7 Inventory 8 Prepaid insurance Accounts payable 0 Interest payable 1 Income tax payable S 177,500 16,000 (6,500) 3 4 Cash Flows from Investing Activities: s Purchase investments 6 Sale of land 7Net cash provided by (used in) investing activities 8 9 Cash Flows from Financing Activities: 0 Issue common stock 1 Issue long term note 2 Net cash provided by (used in) financing activities 3 Net increase (decrease) in cash 4 Cash at beginning of the period 5 Cash at end of the period