Spreadsheet from Trial Balance Heinz Company’s post closing trial balance as of December 31, 2018, and the adjusted trial balance as of December 31, 2019, are shown here:
A review of the accounting records reveals the following additional information:
Required:
Prepare a spreadsheet to support a statement of cash flows for 2019.
Prepare a spreadsheet to support a cash flow statement of H Company for the year 2019.
Statement of cash flows: Cash flow statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.
Worksheet:Â A worksheet is a spreadsheet used while preparing a financial statement. It is a type of form having multiple columns and it is used in the adjustment process. The use of a worksheet is optional for any organization. A worksheet can neither be considered as a journal nor a part of the general ledger.
Prepare a spreadsheet to support the statement of cash flows.
Table (1)
A statement of cash flows of H Company for the year 2019:
Table (2)
Working notes:
(a) Calculate the net loss.
Particulars | Amount($) | Amount($) |
Revenues : | Â | Â |
Sales | Â | 49,550 |
Interest revenue | Â | 790 |
Gain on exchange of assets | Â | 1,300 |
Total revenue | Â | 51,640 |
Expenses: | Â | Â |
Cost of goods sold | 23,800 | Â |
Wages expense | 16,510 | Â |
Other operating expenses | 1,100 | Â |
Depreciation expense: buildings | 2,700 | Â |
Depreciation expense: equipment | 3,100 | Â |
Patent amortization | 815 | Â |
Interest expense | 1,715 | Â |
Loss on sale of investments | 200 | Â |
Loss on sale of building | (2,600) | Â |
Income tax expense | 500 | Â |
Total expenses | Â | (53,040) |
Net Loss | Â | (1,400) |
Table (2)
Note: The $31,850 ending retained earnings balance is derived by subtracting the $1,400 net loss and the $2,100 dividends from the $35,350 beginning retained earnings balance.
(e) Calculate the increase in accounts receivable.
(f) Calculate the increase in inventories.
(g) Calculate the decrease in prepaid items.
(h) Calculate the increase in accounts payable.
(i) Calculate the decrease in interest payable.
(j) Calculate the increase in wages payable.
(l) Proceeds from issuance of bonds payable
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