THIS IS AN ACCOUNTING (EXCEL) PRACTICE PROBLEM!Please read the instructions carefully. Please construct an indirect cash flow statement in Excel for year 4 (the information for year 4 can be found in the images (Exhibit 3.27) that I attached to this question). Module 2 Practice Assignment (Not Graded)In this practice assignment you will have the opportunity to demonstrate your ability to1) Construct an indirect cash flow statement by deconstructing the other financialstatementsInstructions1) Using the financial statements and additional information below, construct anindirect cash flow statement in Excel for year 4. As long as you are following generalcash flow formatting rules (e.g. operating section, investing section, financing section),you can format it as you see fit. Remember that these reports should be clean, easy toread and understand, and useful for decision-making purposes.Exhibit 3.27Nojiri Pharmaceutical IndustriesIncome Statements(amounts in millions)(Problem 3.28)Year Ended March 31:Year 4Year 3Year 2Sales¥41,352Cost of goods soldSelling and administrative expensesInterest expensé(27,667)(13,396)(338)(1,823)¥ (1,872)¥41,926(27,850)(15,243)(364)¥ 44,226(28,966)(15,283)(368)Income tax expense44334Net Income¥(1,088)(357) Exhibit 3.26Nojiri Pharmaceutical IndustriesBalance Sheets(amounts in millions)(Problem 3.28)March 31:Year 4Year 3Year 2Year 1ASSETSCashAccounts and notes recelvable--TradeInventorlesDeferred income taxesPrepaymentsTotal Current AssetsInvestmentsProperty, plant, and equipment, at costLess accumulated depreciationDeferred income taxes¥6,233¥4,569¥4,51319,0037,6931,35517,6287,9481,192325¥318622,35619,7038,706948640¥5,008194578,607824634432¥ 34,7163,30971,792(40,689)¥34,5103,20471,326(36,854]1,4813,312¥76,979¥34,5304,99771,018(35,797)4943,463* 78,70571,510(38.912)2364,551¥73,9151,608Other assetsTotal Assets3,904¥72.328LIABILITIES AND SHAREHOLDERS EQUITYAccounts and notes payable-Trade¥ 10,08710,3601007,200¥ 27,7478,1403.361¥9,62910,32810,8519,779¥ 10,80410023Current portion of long-term debtOther current liabilitiesTotal Current LlabilitlesLong-term debtDeferred income taxes2006,170¥ 26,3277,8899,779¥30,4096,4877565¥28,3928,147Employee retirement benefitsOther noncurrent liabilitiesTotal LlabilitiesCommon stock,Additional paid-in capitalRetained earnings.Accumulated other comprehensive incomeTreasury stockTotal Shareholders EquityTotal Liabilities and Shareholders' Equity809175905174¥35,2951,0872001,16621640,232¥10,758¥38,18310,758 ¥ 10,75815,01213,697(659)(12)¥38,79676,979¥37,921¥ 10.75815,012,15.01415,01211,838(490)(85)¥37,03372,32815,0129,179(342](924)33,68373.915¥ 40,784¥78,705Additional information:• The changes in Accumulated Other Comprehensive Income relate to revaluations ofInvestments in Securities to market value. The remaining changes in Investments inSecurities result from purchases and sales. Assume that the sales occurred at no gain orloss.No sales of property, plant, and equipment took place during the three-year period.The changes in Other Noncurrent Assets are investing activities.The changes in Employee Retirement Benefits relate to provisions made for retirementbenefits net of payments made to retired employees, both of which the statement ofcash flows classifies as operating activities.The changes in Other Noncurrent Liabilities are financing activities.

Question

THIS IS AN ACCOUNTING (EXCEL) PRACTICE PROBLEM!Please read the instructions carefully. Please construct an indirect cash flow statement in Excel for year 4 (the information for year 4 can be found in the images (Exhibit 3.27) that I attached to this question). Module 2 Practice Assignment (Not Graded)In this practice assignment you will have the opportunity to demonstrate your ability to1) Construct an indirect cash flow statement by deconstructing the other financialstatementsInstructions1) Using the financial statements and additional information below, construct anindirect cash flow statement in Excel for year 4. As long as you are following generalcash flow formatting rules (e.g. operating section, investing section, financing section),you can format it as you see fit. Remember that these reports should be clean, easy toread and understand, and useful for decision-making purposes.Exhibit 3.27Nojiri Pharmaceutical IndustriesIncome Statements(amounts in millions)(Problem 3.28)Year Ended March 31:Year 4Year 3Year 2Sales¥41,352Cost of goods soldSelling and administrative expensesInterest expensé(27,667)(13,396)(338)(1,823)¥ (1,872)¥41,926(27,850)(15,243)(364)¥ 44,226(28,966)(15,283)(368)Income tax expense44334Net Income¥(1,088)(357) Exhibit 3.26Nojiri Pharmaceutical IndustriesBalance Sheets(amounts in millions)(Problem 3.28)March 31:Year 4Year 3Year 2Year 1ASSETSCashAccounts and notes recelvable--TradeInventorlesDeferred income taxesPrepaymentsTotal Current AssetsInvestmentsProperty, plant, and equipment, at costLess accumulated depreciationDeferred income taxes¥6,233¥4,569¥4,51319,0037,6931,35517,6287,9481,192325¥318622,35619,7038,706948640¥5,008194578,607824634432¥ 34,7163,30971,792(40,689)¥34,5103,20471,326(36,854]1,4813,312¥76,979¥34,5304,99771,018(35,797)4943,463* 78,70571,510(38.912)2364,551¥73,9151,608Other assetsTotal Assets3,904¥72.328LIABILITIES AND SHAREHOLDERS EQUITYAccounts and notes payable-Trade¥ 10,08710,3601007,200¥ 27,7478,1403.361¥9,62910,32810,8519,779¥ 10,80410023Current portion of long-term debtOther current liabilitiesTotal Current LlabilitlesLong-term debtDeferred income taxes2006,170¥ 26,3277,8899,779¥30,4096,4877565¥28,3928,147Employee retirement benefitsOther noncurrent liabilitiesTotal LlabilitiesCommon stock,Additional paid-in capitalRetained earnings.Accumulated other comprehensive incomeTreasury stockTotal Shareholders EquityTotal Liabilities and Shareholders' Equity809175905174¥35,2951,0872001,16621640,232¥10,758¥38,18310,758 ¥ 10,75815,01213,697(659)(12)¥38,79676,979¥37,921¥ 10.75815,012,15.01415,01211,838(490)(85)¥37,03372,32815,0129,179(342](924)33,68373.915¥ 40,784¥78,705Additional information:• The changes in Accumulated Other Comprehensive Income relate to revaluations ofInvestments in Securities to market value. The remaining changes in Investments inSecurities result from purchases and sales. Assume that the sales occurred at no gain orloss.No sales of property, plant, and equipment took place during the three-year period.The changes in Other Noncurrent Assets are investing activities.The changes in Employee Retirement Benefits relate to provisions made for retirementbenefits net of payments made to retired employees, both of which the statement ofcash flows classifies as operating activities.The changes in Other Noncurrent Liabilities are financing activities.

Accepted Answer

Cash Flow Statement
The purpose of preparing the cash flow statement to know the actual cash inflows…

THIS IS AN ACCOUNTING (EXCEL) PRACTICE PROBLEM! Please read the instructions carefully. Please construct an indirect cash flow statement in Excel for year 4 (the information for year 4 can be found in the images (Exhibit 3.27) that I attached to this question).