Using Excel to prepare the statement of cash flows, indirect method 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.
THE JAMES ISLAND CLOTHING COMPANY
Worksheet
12/31/18
Account TitleAdjusted Trial Balance
DebitCredit
Cash$ 95,700
Accounts Receivable12,000
Inventory4,400
Office Equipment26,000
Truck18,000
Accumulated Depreciation—Plant Assets $ 6,000
Accounts Payable 5,500
Note Payable—Short Term 10,000
Note Payable—Long Term 33,000
Common Stock 100,000
Retained Earnings
Dividends1,000
Sales Revenue 15,000
Cost of Goods Sold3,600
Rent Expense2,000
Advertising Expense800
Depreciation Expense6,000
$ 169,500$ 169,500
Transaction Data for 2018
Cash paid for purchase of office equipment$ 6,000
Cash paid for purchase of truck5,000
Acquisition of Property, Plant, and Equipment with Notes Payable—Long-term33,000
Cash payment of dividends1,000
Cash receipt from issuance of common stock100,000
Requirements:
1.Complete the worksheet for the James Island Clothing Company, filling in the transaction analysis columns.
Note: Some of the input cells marked in blue may not require entries.
2.Prepare the James Island Clothing Company statement of cash flows for the six months ended December 31, 2018. Use the indirect method.
Note: Some of the input cells marked in blue may not require entries.
Excel Skills:
1.Use cell references in formulas.
2.Format cells with comma format, dollar format, and underlines as appropriate.
Requirement 1
Complete the worksheet for the James Island Clothing Company, filling in the transaction analysis columns.
Note: Some of the input cells marked in blue may not require entries.
The James Island Clothing Company
Spreadsheet for Statement of Cash Flows
Year Ended December 31, 2018
Panel A – Balance SheetBalance
7/1/18Transaction AnalysisBalance
12/31/18
DebitCredit
Cash$ 0$ 95,700 $ 95,700
Accounts Receivable012,000 12,000
Inventory04,400 4,400
Office Equipment026,000 26,000
Truck018,000 18,000
Accumulated Depreciation—Plant Assets0 6,000$ 6,000
Total Assets$ 0
Accounts Payable0 $ 5,500$ 5,500
Note Payable -Short Term0 10,000$ 10,000
Note Payable - Long Term0 33,000$ 33,000
Total Liabilities0
Common Stock0 100,000100,000
Retained Earnings01,0002,6001,600
Total Liabilities and Stockholders' Equity$ 0
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
Cash Flows from Investing Activities:
Cash Paid for Acquisition of Plant Assets 11,000
Net Cash Used for Investing Activities
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
Net Increase (Decrease) in Cash: 95,700
Total 281,200281,200