TAB LABELED AS INSTRUCTIONS

Chapter $14$

Using Excel

P$14-46$ Using Excel to prepare the statement of cash flows, indirect method

The James Island Clothing Company began operations on July $1,2018.$

They adjusted trial balance as of December $31,2018,$ appears below, along with transaction data for $2018.$

THE JAMES ISLAND CLOTHING COMPANY

Worksheet

$12/31/18$

Account Title Adjusted Trial Balance

Debit Credit

Cash $ $95,700$

Accounts Receivable $12,000$

Inventory $4,400$

Office Equipment $26,000$

Truck $18,000$

Accumulated Depreciation$$Plant Assets $ $6,000$

Accounts Payable $5,500$

Note Payable$$Short Term $10,000$

Note Payable$$Long Term $33,000$

Common Stock $100,000$

Retained Earnings

Dividends $1,000$

Sales Revenue $15,000$

Cost of Goods Sold $3,600$

Rent Expense $2,000$

Advertising Expense $800$

Depreciation Expense $6,000$

$ $169,500$ $ $169,500$

Transaction Data for $2018$

Cash paid for purchase of office equipment $ $6,000$

Cash paid for purchase of truck $5,000$

Acquisition of Property, Plant, and Equipment with Notes Payable$$Long$-$term $33,000$

Cash payment of dividends $1,000$

Cash receipt from issuance of common stock $100,000$

Requirements:

$1.$ Complete the worksheet for the James Island Clothing Company, filling in the transaction analysis columns.

Note: Some of the input cells marked in blue may not require entries.

$2.$ Prepare the James Island Clothing Company statement of cash flows for the six months ended December $31,2018.$ Use the indirect method.

Note: Some of the input cells marked in blue may not require entries.

Excel Skills:

$1.$ Use cell references in formulas.

$2.$ Format cells with comma format, dollar format, and underlines as appropriate.

TAB LABELED AS DATA

Statement of Cash Flows

Cash Flows from Operating Activities:

Net Income

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities

Provided by Operating Activities:

Depreciation Expense $-$ Plant Assets

Increase in Accounts Receivable

Decrease in Accounts Receivable

Increase in Inventory

Decrease in Inventory

Increase in Accounts Payable

Decrease in Accounts Payable

Increase in Notes Payable$$Short$-$term

Decrease in Notes Payable$$Short$-$term

Net Cash Provided by Operating Activities

Cash Flows from Investing Activities:

Cash Paid for Acquisition of Plant Assets

Net Cash Used for Investing Activities

Cash Flows from Financing Activities:

Cash Receipt from Issuance of Common Stock

Cash Payment of Notes Payable$$Long$-$term

Cash Receipt from Issuance of Notes Payable$$Long$-$term

Cash Payment of Dividends

Net Cash Provided by Financing Activities

Net Increase $($Decrease$)$ in Cash:

Cash Balance, July $1,2018$

Cash Balance, December $31,2018$

TAB LABELED AS WORKSHEET SOLUTION

Panel A $$ Balance Sheet Balance

$7/1/18$ Transaction Analysis Balance

$12/31/18$

Debit Credit

Cash $ $0-$

Accounts Receivable $0-$

Inventory $0-$

Office Equipment $0-$

Truck $0-$

Accumulated Depreciation$$Plant Assets $0$

Total Assets $ $0$ $ $-$

Accounts Payable $0$

Note Payable $-$Short Term $0$

Note Payable $-$ Long Term $0$

Total Liabilities $0-$

Common Stock $0$

Retained Earnings $0$

Total Liabilities and Stockholders' Equity $ $0$ $ $-$ $ $-$ $ $-$

Panel B $$ Statement of Cash Flows

Cash Flows from Operating Activities:

Net Income

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities

Depreciation Expense $-$ Plant Assets

Increase in Accounts Receivable

Increase in Inventory

Increase in Accounts Payable

Increase in Notes Payable$$Short$-$term

Net Cash Provided by Operating Activities

Cash Flows from Investing Activities:

Cash Paid for Acquisition of Plant Assets

Net Cash Used for Investing Activities

Cash Flows from Financing Activities:

Cash Receipt from Issuance of Common Stock

Cash Payment of Dividends

Net Cash Provided by Financing Activities

Net Increase $($