Objectives: -Gain the ability to visually understand and construct a Statement of Cash Flows -Continued growth in the recording of accounting transactions and subsequent path through the financial statements -Further develop skills in the use of Microsoft Excel to construct and analyze financial statements Task: Using the comparative balance sheets in tab A and the additional information provided in tab D, complete the construction of the income statement and statement of cash flows. Lastly, complete the additional analysis in tab E. Recommended Instructions: 1. Carefully examine the financial statements and information provided in tabs A, B, C, and D. 2. Record journal entries or T-accounts for the transactions listed in tab "D. Additional Transactions Info." You may enter the entries in the space provided under each item. 3. Utilize the empty columns in the comparative balance sheet to enter the effects of each transaction as an adjustment to the balance sheet during the year 2016. You should use links to bring the information from tab D to the columns in tab A. NOTE: Carefully consider which signs the numbers should be (aka positive or negative) when entering them to adjust each account. You may have to switch the signs when you link the numbers. Notice there are Edit Checks to ensure completeness across the bottom and far right side of the spreadsheet in Tab A. If you have made the correct adjustments, the Edit Checks will zero out. After completing all the relevant columns in the Balance Sheet, the numbers in the column "Total 12/31/16 after adjustments" should equal the numbers in the "December 31, 2016" column. 4, Complete the income statement in tab B. 5. By referencing the income statement and balance sheet, you should now be able to complete the statement of cash flows. Once again, use links and be careful with your signs. For the operating section, you should complete both the indirect and direct methods. 6. Document your work thoroughly as demonstrated in class. Any figures used in the financial statements should be connected via formulas and cell references to either calculations, journal entries, t-accounts, or however you show the origin of transactions. 7. To complete the assignment, answer the additional analysis short answer questions in tab E. WILDGAT TRUCKING CORP 'Comparative Balance Sheet December 31, 2016 and 2015 2016 TRANSACTIONS AND BALANCE CHANGES - SEE TICKMARK REFERENCES FOR DETAIL Working Depreciation Total 1231/16 December 31, Capital Equipment Equipment and Contingent after December 31, ASSETS 2015 Accruals Buildings (Owned) (Leased) Amortization Interest Loss adjustments 2016 Change Current assets Cash $462,065 1,046,060 $1,397,625 $1843071 $1,381,006 'Accounts receivable 84,585 (60,960) $23,625 $ 23625 $ (60,960) Inventory 220.010 $ 20010 $ 315000 $ 94,990 Total current assets $766,660 $2,181,696 Property, plant & equip. Building 4,400,000 $1,400,000 4,600,000 $ 200,000 Less: Accumulated depreciation (Building) (485,000) $ (485,000) (45,000) 440,000 Equipment 520,000 $520,000 = $ (620,000, Less: Accumulated depreciation (Equipment) (185,000) $ (185,000) -|_|s 185,000 Right-of-use Asset - $ - 164,182 $ 164,132 Total property, plant & equipment $1,250,000 $1,719,132 Total assets $2,016,660 $3,900,828 LIABILITIES Current liabilities 'Accounts Payable $106,190 - $106,190 S$ 8175S 181,985 Other Accrued Liabilities $14,800 - $14,800 $ 75000 $ 60,200 Income Taxes Payable $23,500 $ 23500 $ 18000 $ (5,500) Contingent Liabilities $ - s - $ 85000 $ 85,000 Interest Payable $ - $ : $ 10413 $ 10.413 Dividends Payable $30,500 $ 30500 $ 2750 $ (7.750) Long-term liabilities Notes Payable - s - $ $2,000,000 Less: Discount on Notes Payable - $ - $ $ (585,000) Lease Liability $ - $ $ 138,843 Total liabilities $___ 174,990 $ 'STOCKHOLDERS' EQUITY 'Common Stock, $1 par 61,000 $61,000 $ 61,000 $ - APIC 4,400,000 $1,400,000 $ 1422500 $ 22,500 Treasury Stock - $ (110,500) $ (110,500) $ __(110,500) Retained earnings 985,100 $1,365,770 S$ 474ea7_ S$ 93.977 Total stockholders' equity $ Total Liabilities and equity $ Assets 985,100 : $ -| Is $ =| [s =| Is : $2,891,260 Liab and Equity 985,100 : $ -| Is - $8 -| Ts - $8 - $2,891,260 dit Check : - $ =| 1s - $8 =| [s \"$s : $ : Edit Check 445,446 94,990 200,000 440,000 (620,000) 185,000 164,132 181,985 (6,500) 185,000 10,413 (7,750) 2,000,000 (685,000) 138,843, 22,500 (691,123) WILDCAT TRUCKING CORP Income Statement before Closing For the year ending on December 31, 2016 2016 Sales coGs Gross Profit Operating Expenses Depreciation and Amortization Expense Interest Expense Incentive Compensation Expense Contingent Losses Other Operating Expenses Other Gains and Losses Gain on Sale of Equipment Loss on Sale of Building Income Before Taxes Income Tax Expense (21% of IBT) Net Income 1. The following income statement items were available for the year 2016: Sales 985,100 COGS 140,400 Other Operating Expenses* 174,320 Note: This is not a comprehensive list of income items. Using the information on this page, you will have to determine the amounts for the remaining items needed to complete the income statement in tab B. Extra Note: Purchases of inventory are made through Accounts Payable while other operating expenses are recorded as Other Accrued Liabilities A/R Inventory Beg Bal 84,585 Sales 985,100 1,046,060 Cash Rec End Bal 23,625 A/P 2. Wildcat's statutory tax rate is 21%. There were no book-tax differences during the period. Income Taxes Payable