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.