question archive Complete the following problem, in excel (show exactly how the balance sheet account changes flow into the statement of cash flow): The comparative balance sheets for 2016 and 2015 are given below for Surmise Company

Complete the following problem, in excel (show exactly how the balance sheet account changes flow into the statement of cash flow): The comparative balance sheets for 2016 and 2015 are given below for Surmise Company

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Complete the following problem, in excel (show exactly how the balance sheet account changes flow into the statement of cash flow):

The comparative balance sheets for 2016 and 2015 are given below for Surmise Company. Net income for 2016 was $50 million.

 

SURMISE COMPANY
Comparative Balance Sheets
December 31, 2016 and 2015
($ in millions)

 

2016

2015

  Assets

 

 

 

 

  Cash

 

45   

 

40   

  Accounts receivable

 

92   

 

96   

      Less: Allowance for uncollectible accounts

 

(12)  

 

(4)  

  Prepaid expenses

 

8   

 

5   

  Inventory

 

145   

 

130   

  Long-term investment

 

80   

 

40   

  Land

 

100   

 

100   

  Buildings and equipment

 

411   

 

300   

      Less: Accumulated depreciation

 

(142)  

 

(120)  

  Patent

 

16   

 

17   

 

       

 

 

743   

 

604   

 

       

  Liabilities

 

 

 

 

  Accounts payable

 

17   

 

32   

  Accrued liabilities

 

(2)  

 

10   

  Notes payable

 

35   

 

0   

  Lease liability

 

111   

 

0   

  Bonds payable

 

65   

 

125   

  Shareholders’ Equity

 

 

 

 

  Common stock

 

60   

 

50   

  Paid-in capital—excess of par

 

245   

 

205   

  Retained earnings

 

212   

 

182   

 

       

 

 

743   

 

604   

 

       
 

 

Required:

Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2016. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances.

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