Instructions: Using the "changes columns" and additional information from the adjusted trial balance tab AND the income statement, make statement of cash flows following the INDIRECT METHOD. Round all amounts to the nearest cent. Follow the below tips The formatting is up to the student. Note that grades are based on organization, formula use, and clarity of financial statement. Other required items:

a. Only use accounts that have changes or cash flows

b. Include proper report title

c. Not all rows or columns need to be used. Formulas MUST be used when necessary.

TIPS PLEASE READ:

1. Correct selection of "Increase" or "Decrease" in accounts must be used as part of the label where applicable

2. Correct use of "cash paid" or "cash received" must be used where applicable

3. Subtotals for each section MUST be properly identified as cash "used in" or "provided by"

4. All changes utilize CASH. There ARE GAINS AND LOSSES from investments that must be included in operating activities

5. Net change in cash + beginning cash balance (from a adjusted trial balance July 2019 column) must equal ending cash balance and be included at the bottom of this statement.

July 31, 2019 CHANGES COLUMNS July 31, 2020 Adjusted Used ONLY for Statement of cash Adjusted Additional Notes for Statement of Cash Flows Trial Balance flows Acct. No. Trial Balance Account Title Dr Cr. Debit Credit Dr C 100 Cash 583,730.00 Change in cash not required in operating activites, but should 21,470.00 605,200.00 match net increase or decrease in cash 102 Accounts Receivable, net 445,000.00 425,500.00 104 Merchandise Inventory, net 497,430.00 597,600.00 106 Office Supplies 1,250.00 6,500.00 107 Prepaid Expenses 12,500.00 10,500.00 120 Equity Investments - Trading 59,650.00 86,450.0 122 nvestments - Held to Maturity 23,850.00 $5,950.00 140 Lan 1,000,000.00 1,500,000.00 145 Building 2,500,000.00 3,500,000.00 146 Accumulated Depreciation - Building 312,500.00 400,000.00 Use depreciation expense from income statement 151 Equipment 170,000.00 205,000.00 152 Accumulated Depreciation - Equipment 85,000.00 96,000.00 Use depreciation expense from income statement 153 Office Furniture 32,500.00 42,500.00 154 Accumulated Depreciation - Office Furniture 16,250.00 18,250.00 Use depreciation expense from income statement 201 Accounts Payable 356,000.00 393,420.0 202 Wages Payable 203 nterest Payable 204 Dividends Payable 205 Unearned Rent 6,000.00 4,000.00 206 Customer Refunds Payable 35,600.00 29,000.00 250 Notes Payable - Long Term 12,000.00 212,000.00 251 Bonds Payable - Long Term 200,000.00 100,000.00 252 Premium on Bonds Payable 253 Discount on Bonds Payable 252 Mortgage (Warehouse) Payable 248,000.00 798,000.00 300 Common Stock, $1 Par, 100,000 Authorized; 81,000 shares Issued/Outstanding 65,500.00 81,000.00 301 Paid In Capital - Excess of Par Common Stock 1,177,250.00 1,177,250.00 330 Retained Earnings 2,351,400.00 2,849,810.00 331 Cash Dividends 200,000.00 340 Treasury Stock 38,000.00 88,000.00 500 Sales 3,457,984.00 3,975,725.00 600 Cost of Goods Sold 1,750, 199.00 1,509, 195.00 700 Wage Expense (hourly workers) 794,515.00 799,500.00 701 Salaries Expense (Exempt Staff) $9,000.00 229,000.00 702 Marketing Expense 65,000.00 75,000.00702 Marketing Expense 65,000.00 75,000.00 703 Travel and Entertainment Expense 525.00 85,600.00 704 Bad Debt Expense 6,500.00 9,900.00 705 Property Tax Expense 111,200.00 150,000.00 706 Office Maintenance & Repair Expense 30,000.00 707 Legal Expenses 5,400.00 708 Insurance Expense 1,500.00 3,500.00 709 Miscellaneous Expense 48,985.00 53,925.00 710 Office Supplies Expense 400.00 735.00 711 Telecommunications Expense 10,000.00 712 Depreciation Expense - Building 62,500.00 87,500.00 713 Depreciation Expense - Equipment 17,000.00 6,000.00 714 Depreciation Expense - Office Furniture 3,250.00 11,750.00 800 Rent Income 12,000.00 802 Gain on Sale of Equity Investment Securities - Trading 35,000.00 900 Interest Expense 5,000.00 61,000.00 902 Loss on sale of Held to Maturity Investments 4,000.00 30,250.00 Total 8,323,484.000 8,323,484.000 10,481,455.000 10,481,455.000 2,959,574.00 3,457,984.00 Net Income (Loss) 498,410.00