Question

1 The Statement of Cash Flows 2 Using Excel to prepare the statement of cash flows, indirect method 4 5 The James Island Clothing Company began operations on July 1, 2018. The adjusted trial balance as of December 31, 2018, appears below, along with transaction data for 2018. JAMES ISLAND CLOTHING COMPANY Adjusted Trial Balance 12/31/18 Account Title Cash Accounts Receivable Inventory Office Equipment Truck Accumulated Depreciation-Plant Assets Accounts Payable Note Payable-Short Term Note Payable-Long Term Common Stock Retained Earnings Dividends Sales Revenue Cost of Goods Sold Rent Expense Advertising Expense Depreciation Expense Balance Debit Credit 95,700 12,000 4,400 26,000 18,000 6,000 5,500 10,000 33,000 100,000 1,000 15,000 3,600 2,000 800 6,000 169,500 $ $ 169,500 36 37 Transaction data for 2018 Cash paid for purchase of office equipment $ 6,000 Cash paid for purchase of truck 5,000 Acquisition of plant assets with a long-term notes payable 33,000 Cash payment of dividends 1,000 38 Cash receipt from issuance of common stock 100,000 39 Use the blue shaded areas on the ENTER-ANSWERS tab for inputs. 40 ALWAYS use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrou 41 cash outflows or amounts to be subtracted. 42 43 Requirements:

Answer 1

Spreadsheet for Statement of Cash Flows
Panel A - Balance Sheet				Balance 07/01/2018	Transactional Analysis		Balance 12/31/2018
					Debit	Credit
Cash				$           -	$ 95,700		$   95,700
Accounts Receivable				$           -	$ 12,000		$   12,000
Inventory				$           -	$    4,400		$    4,400
Office Equipments				$           -	$    6,000		$    6,000
Truck				$           -	$    5,000		$    5,000
Accumulated Depreciation-Plant Assets				$           -		$    6,000	$   (6,000)
Total Assets				$           -	$123,100	$    6,000	$ 117,100
Accounts Payable				$           -		$    5,500	$    5,500
Note Payable - Short Term				$           -		$ 10,000	$   10,000
Note Payable - Long Term				$           -			$           -
Total Liabilities				$           -		$ 15,500	$   15,500
Common Stock				$           -		$100,000	$ 100,000
Retained Earnings				$           -	$    1,000		$   (1,000)
Total Liabilities and Stockholders' Equity				$           -	$    1,000	$115,500	$ 114,500

Panel B - Statement of Cash Flows
Cash Flows from Operating Activities:
Net Income								$    2,600
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Depreciation Expense - Plant Assets								$    6,000
Increase in Accounts Receivable								$ (12,000)
Increase in Inventory								$   (4,400)
Increase in Accounts Payable								$    5,500
Increase in Notes Payable - Short Term								$ 10,000
Net Cash Provided by Operating Activities									$   7,700
Cash Flows from Investing Activities:
Cash Paid for Acquistion of Plant Assets								$ (11,000)
Net Cash Used for Investing Activities									$(11,000)
Cash Flows from Financing Activities
Cash Receipt from Issuance of Common Stock								$100,000
Cash Payment of Dividends								$   (1,000)
Net Cash Provided by Financing Activities									$ 99,000
Net Increase/(Decrease) in Cash									$ 95,700