Instructions:

The assignment must be completed in an Excel spreadsheet and include the following:

a. Prepare a statement of cash flow using the indirect method for this year.

b. Determine free cash flow.

Excel Assignment # 1 - Statement of Cash Flow Spring Semester Northern Illinois Manufacturing prepared the balance sheet and income statement for this year. Now the company needs to prepare its statement of cash flow. The comparative balance sheets for Northern Illinois Manufacturing for this year and last year and the income statement for this year are presented below. (Note: Work in Process is a current asset and should be treated as any other current asset.) Additional information: 1. Northern Illinois Manufacturing sold a piece of company equipment for $24,000. The equipment had been used for ten years. It had cost $80,000 when purchased and had a 10-years life and a $6,000 salvage value. Straight-line depreciation was used. 2. Northern Illinois Manufacturing purchased new equipment costing $209,200. 3. The company paid $50,000 in dividends. Northern Illinois Manufacturing Income Statement For the year ending December 31 71 319 Sales $5,536,0721 Less: Cost of goods sold 3.132.777 Gross Profit 2,403,300 Operating expenses: Advertising 550.000 Insurance 400,000 Salaries and wages 584,640 Depreciation Other op expenses 21.200 Total operating expenses 1.127.159 Income from operations 1,276,1411 Other income Gain on sale of equip 18.0001 Other expenses Interest expense 112.182 Net other income and expenses 5.813 Income before income tax 1,281,9541 Income tax expenses 384586 Net income $897,368 8:59 el 5G