Homework

Excel Assessment: In this assignment, you will demonstrate your knowledge and competencies to use Excel to

solve an accounting problem. Approximately 50% of your grade will be based on correct use of Excel and the

remaining 50% will be based on your ability to create a Statement of Cash Flows using both the direct & indirect

methods.

Instructions:

1) Use the Comparative Balance Sheets & the Income Statement along with the additional information included in

the tabs below to prepare a Statement of Cash Flows using the Direct Method. Place your answer on the Direct

Method tab of this spreadsheet.

2) Use the Comparative Balance Sheets & the Income Statement along with the additional information below to

prepare a Statement of Cash Flows using the Indirect Method. Place your answer on the Indirect Method tab of this

spreadsheet.

3) Use the Excel formula function for all computations.

4) Do not copy and paste figures from the Balance Sheets or Income Statement when preparing the Statement of

Cash Flows. Instead, reference data from one sheet to another using Excel formulas..



Additional information for Year 2:

Based on the outstanding job of the asset managers, none of the accounts receivable were

written off.

The CFO sold investments in Year 2 worth



$25,000



The asset acquisitions manager sold equipment she had purchased originally for



$20,000



>>>>When the equipment was sold, it had already been depreciated by



40%



The Board of Directors declared and paid dividends in Year 2.

Common stock was issued in exchange for a plot of land the company planned to develop in

the future.



Operating Expenses:

Uncollectible Accounts Expense



$ 3,000



Depreciation Expense: Buildings



8,000



Depreciation Expense: Equipment



13,500



Your STUDENT NAME Company

Comparative Balance Sheets

At December 31,

Year 2

Assets

Current Assets

Cash

$ 60,000

Investment

30,000

Accounts receivable

$ 152,000

Less Allowance for uncollectible acco

6,000

146,000

Inventory

118,000

Total Current Assets

$ 354,000

Property, Plant, & Equipment

Land

$ 50,000

Buildings

$ 160,000

Less Accumulated depreciation on Bui

40,000

120,000