Using a spreadsheet to prepare the statement of cash flows— indirect method The 2018 comparative balance sheet and income statement of Attleboro Group, Inc. follow. Attleboro disposed of a plant asset at book value in 2018.

Prepare the spreadsheet for the 2018 statement of cash flows. Format cash flows from operating activities by the indirect method. A plant asset was disposed of for \(0. The cost and accumulated depreciation of the disposed asset was \)13,600. There were no sales of land, no retirement of common stock, and no treasury stock transactions. Assume plant asset and land acquisitions were for cash.

Attlebord Group Inc.

Spreadsheet for statement of cash flows

Year ended December 31, 2018

Panel A-Balance Sheet

Balance

31/12/2017

Transaction Analysis

Balance

31/12/2018

Debit

Credit

Cash

$15,500

$14,000

Account receivables

$43,700

$1,700

$42,000

Land

$11,000

$25,400

$36,400

Plant Assets

$112,850

$8,400

$121,250

Accumulated Depreciation

($18,650)

($1,700)

($20,350)

Merchandise Inventory

$93,300

$3,500

$96,350

Total Assets

$257,700

$290,100

Accounts Payable

$26,000

$1,500

$24,500

Accrued Liabilities

$22,600

$1,300

$23,900

Common Stock

$121,000

$8,500

$129,500

Notes Payable (Long-Term)

$69,000

$13,000

$56,000

Retained Earnings

$19,100

$37,100

$56,200

Total Liabilities and Shareholder’s Equity

$257,700

$290,100

Panel B- Statement of Cash Flows

Cash Flows from Operating Activities

Net Income

$65,300

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

Depreciating Expense

$15,300

Decrease in account receivables

$1,700

Increase in merchandise inventory

$(3,500)

Decrease in account payable

$(1,500)

Decrease in accrued liability

$1,300

Net cash provided/ (used) in operating activities

$78,600

Cash flow from Investing Activities:

Purchase of plant

$(22,000)

Purchase of land

$(25,400)

Net cash provided/ (used) in Investing activities

$(47,400)

Cash flow from Financing Activities:

Issuance of common stock

$8,500

Payment of notes payable

$(13,000)

Dividend paid

$(28,200)

Net cash provided/ (used) in financing activities

$(32,700)

Net increase/ (decrease) in cash

$(1,500)

Add: Beginning cash balance

$15,500

Ending cash balance

$14,000