Question

Reindor 100 EA3-R2 Create the Statement of Cash Flows for Hailstorm Co. is exercise, you will use the indirect method to create a statement of cash flows in Excel for Hailstorm Co. The following amounts relate to January of 2016. Net Income 53,100 Sale of Machinery $1,900 Depreciation Expense $400 Purchase of Equipment $2,100 Accounts Receivable beginning) $1.900 investment by Owner $1,000 Accounts Receivable ending) $1,100 Lucas Schmidt, Drawing $300 Accounts Payable (beginning) $2,900 Cash (beginning balance) $7,800 Accounts Payable lending) $1,700 1. Open EA3-R2-StatementofCF from your Chapter 03 folder and save it as EA3-R2-StatementofCF-[Your Name] 2. In cell A5, enter a header for the first section of the statement (without a colon at the end). 3. Enter the first item for this section in cell A6 and its associated amount in cell C6. 4. Enter the name of the only expense item for this section in cell A7 and its associated amount in cell C7 5. Enter the remaining two items for this section on rows 8-9 in the order they appear in the balance sheet. Hint: Any amounts that result in cash flowing out of the business should be entered as negative figures within this section. 6. In cell A10, type the appropriate cash flows description based on the information in this section of the statement (do not include a colon). 7. Enter =C6+27+C8+C9 in cell D10. Complete the Second Section of the Statement of Cash Flows 8. In cell A12, enter a header for the second section of the statement (without a colon at the end). 9. Enter the first item for this section (enter items from largest to smallest in this section) in cell A13 and its associated amount in cell C13. 10. Enter the second item for this section in cell A14 and its associated amount in cell C14. 11. In cell A15, type the appropriate cash flows entry based on the information in this section of the statement (do not include a colon). 12. Click cell D10 and press (Ctrl+C), click cell D15, and choose Home-ClipboardPaste, The formula in cell D15 needs to be corrected. 13. Click in the Formula Bar to the left of C13 and tap Backspace enough times to delete the first two cell references.

Answer 1

Indirect Method to Calculate Cash Flow of Hailstorm Co.

EA3-R2-StatmentofCF - Excel Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do 8 Share A ( Calibri L General Autosum 2 Wrap Test Merge & Centet Z X Cut Copy - Format Painter Clipboard Faste BTU G .% . Conditional Format Formatting Table Styles Gell Styles n ert Delete Fatma Sorta Find a F . Select Font Alignment Number SUM =C6+7+C8+09 1 POR 2 CASH FLOW FOR HAILSTORM CO. 31001 400) 800 12001 1=C6+7+809 5 Cashflow from Operating Activities 6 Net Income 7 Depreciation Expense 8 Accounts Receivable Decrease 9 Accounts Payable Decrease 10 Net Cash Flow from Operating Activities 11 12 Cash Flow from Investing Activities 13 Purchase of Equipment 14 Sale of Machinery 15 Net Cash Flow from Investing Activities -2100 1900 -200 Sheet1 13:27 ENG /02/201205

File Home Insert Page Layout Formulas Data Review EA3-R2-StatmentofCF - Excel Tell me what you want to do View Help a Xcut Copy | Autolu - A Wrap Text El Merge Format Pant Clipboard BTU A- === General 0.$ Delete Format Sorta Find a Conditional Format Formatting Table Styles Styles - Alignment Number C SUM C13+014 C D E F M N O P 2 CASH FLOW FOR HAILSTORM CO. 5 Cashflow from Operating Activities 6 Net Income 7 Depreciation Expense 8 Accounts Receivable Decrease 9 Accounts Payable Decrease 10 Net Cash Flow from Operating Activities 3100 400 -800 1200 3900 11 12 Cash Flow from Investing Activities 13 Purchase of Equipment 14 Sale of Machinery 15 Net Cash Flow from Investing Activities -2100 1900! 1-C13+014 Sheet1 13:20 ANGO Ett 0 0 E *