Using a spreadsheet to prepare the statement of cash flows—indirect method Use the Boost Plus, Inc. data in Exercise E14-21 to prepare the spreadsheet for the 2018 statement of cash flows. Format cash flows from operating activities by the indirect method.

Spreadsheet for statement of cash flows

Balance

Balance

Debit

Credit

Cash

$13,000

$39,000

Account receivables

$61,000.00

$15,000.00

$46,000

Land

$102,000.00

$20,000.00

$82,000

Plant Assets

$90,000

$124,000

$214,000

Accumulated Depreciation

($34,000)

($27,000)

($61,000)

Merchandise Inventory

$88,000

$6,000

$94,000

Total Assets

$320,000

$130,000

$8,000

$414,000

Accounts Payable

$15,000

$17,000

$32,000

Accrued Liabilities

$20,000

$8,000

$12,000

Common Stock

$4,000

$36,000

$40,000

Notes Payable (Long-Term)

$15,000

$1,000

$16,000

Retained Earnings

$266,000

$48,000

$314,000

Total Liabilities and Shareholder’s Equity

$320,000

$8,000

$102000

$414,000

Panel B- Statement of Cash Flows

Cash Flows from Operating Activities

Net Income

$53,000

Adjustments to reconcile Net Income to Net cash provided by Operating Activities:

Depreciating Expense

$27,000

Decrease in account receivables

$15,000

Increase in merchandise inventory

$6,000

Increase in account payable

$17,000

Decrease in accrued liability

$8,000

Net cash provided/ (used) in operating activities

Cash flow from Investing Activities:

Purchase of plant

$108,000

Sale of land

$20,000

Net cash provided/ (used) in Investing activities

Cash flow from Financing Activities:

Issuance of common stock

$36,000

Payment of notes payable

$15,000

Dividend paid

$5,000

Net cash provided/ (used) in financing activities

Net increase/ (decrease) in cash

$26,000

$168,000

$168,000