Required (use excel for each step)

3. Prepare a statement of cash flows using the indirect method. Show how you reconcile each change in the balance sheet accounts (the incomplete explanation column highlighted in yellow) to amounts appearing in the statement of cash flows

As of December 31 2014
Assets	2014	2013	Change		Explanations
Cash	$ 72,823	$ 22,000	$ 50,823		$	buying land
Accounts Receivable	$ 82,797	$ 67,974	$ 14,823
Inventory	$ 181,797	$ 190,974	$ (9,177)
Land	$ 72,797	$ 111,974	$ (39,177)		$	Jan 1 Book Value
Equipment	$ 258,203	$ 198,026	$ 60,177		$	gains from sale
Accumulated Depreciation-Equipment	$ (70,797)	$ (43,974)	$ (26,823)
Total	$ 598,620	$ 546,974
Liabilities and Stockholder Equity
Accounts Payable	$ 35,797	$ 48,974	$ (13,177)
Bonds Payable	$ 150,000	$ 200,000	$ (50,000)
Common Stock ($1 per)	$ 214,000	$ 164,000	$ 50,000		$ 128,594	Net Income
Retained Earnings	$ 198,823	$ 134,000	$ 64,823		$ 63,771	Dividends
Total	$ 598,620	$ 546,974	$ 51,646		$ 64,823
Addition Information
Net Income for 2014 was $128,594
Cash dividends of $63,771 were declared and paid
Bonds payable amounting to $50,000 were retired through the issuance of common stock
Purchased land during the year for $10,00 and sold it for $12,000

A comparative balance sheet for Shabbona Corporation is presented below. December 31 2014 2013 A sets $22,000 67,974 190,974 $72,823 83,797 181,797 72,797 Cash Accounts receivable Inventory 111,974 198,026 (43,974) $546,974 Land 258,203 (70,797) Equipment Accumulated Depreciation-Equipment $598,620 Total Liabilities and Stockhoiders Eeuity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total $35,797 150,000 214,000 198,823 $598,620 $ 48,974 200,000 164,000 134,000 $546,974 Additional information: 1. Net income for 2014 was $128,594. 2. Cash dividends of $63,771 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. 4. Purchased land during the year for $10,000 and sold it for $12,000. Required (use EXCEL for each step below): 1. Input the comparative balance sheet into an EXCEL spreadsheet. 2.Add a column that calculates the change in each account from 2013 to 2014. 3. Prepare a statement of cash flows using the indirect method. Show how you reconcile each change in the balance sheet accounts to amounts appearing in the statement of cash flows