Preparing a Statement of Cash Flows Using the Indirect Method

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 $31.$

Here are some tips for using Excel:

Multi$-$Tab Cell Reference: Allows you to refer to data from another cell in a separate tab in the worksheet. When using the multi$-$tab Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work.

Nothing in this area will be graded, but it will be submitted with your assignment.

cell reference, type the equal sign first, then click on the other tab and then click on the cell you want to reference. The syntax of a

multi$-$tab cell reference looks different than a normal cell reference, since it includes the tab name surrounded by apostrophes and

also an exclamation point before the cell location. From the Excel Simulation below, if in a blank cell on the Sheet$1$ tab $"=$Income

Statement'!B$15"$ was entered, the formula would output the result from cell B$15$ in the Balance Sheet tab, or $16,000$ in this example.

Basic Math Functions: Allow you to use the basic math symbols to perform mathematical functions. You can use the following keys:

$($plus sign to add$),-($minus sign to subtract$),*($asterisk sign to multiply$),$ and $/($forward slash to divide$).$ For example, if you entered

$"=$B$4+$B$5"$ in a blank cell, the formula would add the values from those cells and output the result.

SUM Function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges. If you

entered $"=$SUM$($C$4,$C$5,$C$6)"$ into a blank cell, the formula would output the result of adding those three separate cells. Similarly, if you

entered "SUM$($C$4$:C$6)",$ the formula would output the same result of adding those cells.

Use the Open Excel in New Tab button to launch this question.

When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.

Required:

INCLUDE functions$/$formulas and working notes