23 Apr EA3-A2 Create the Statement of Cash Flows for Fitness Pros Co. EA3-R2 INSTRUCTIONS.docx In this exercise, you will use the indirect method to create a statement of cash flows for Fitness Pros Co.

EA3-A2 Create the Statement of Cash Flows for Fitness Pros Co. EA3-R2 INSTRUCTIONS.docx

In this exercise, you will use the indirect method to create a statement of cash flows for Fitness Pros Co.

 

Access the proper file.

 

Using Project Grader: Download EA3-A2-StatementofCF-eStart.

Not using Project Grader: Open EA3-A2-StatementofCF.

These amounts relate to October 2026:

 

Net Income        $9,000

Depreciation Expense    $1,250

Accounts Receivable (beginning)              $3,950

Accounts Receivable (ending)     $10,750

Accounts Payable (beginning)     $8,300

Accounts Payable (ending)          $200

Purchase of Furniture     $4,900

Purchase of Machinery  $8,800

Notes Payable (beginning)          $0

Notes Payable (ending)  $4,500

Eva Bryant, Drawing       $6,000

Cash (beginning balance)            $35,600

First Section

 

Location             What to Enter

Cell A5  Header (with colon) (PG-1a)

Cells A6 and C6 Name and amount of the first item (PG-1b)

Cells A7 and C7 Name and amount of the only expense item (PG-1c)

Cells A8 and C8 Name of next item (use A/R as the description) and its amount (PG-1d)

Cells A9 and C9 Name and amount of the final item (no abbreviations) (PG-1e)

Cells A10 and D10          Description of the final amount (with colon) and a formula to calculate it (PG-1f)

Hint: For rows 8–9, enter the items in the order they would appear in the balance sheet. Also, for the description in cell A10, recall that the phrasing changes depending on whether the amount in cell D10 is positive or negative.

 

Second Section

 

Location             What to Enter

Cell A12             Header (with colon) (PG-2a)

Cells A13 and C13           Name and amount of the largest item (PG-2b)

Cells A14 and C14           Name and amount of the smallest item (PG-2c)

Cells A15 and D15          Description of the final amount (with colon) and a formula to calculate it (PG-2d)

Hint: To determine the appropriate description for cell A15, check whether the associated amount in cell D15 is positive or negative.

 

Third Section

 

Location             What to Enter

Cell A17             Header (with colon) (PG-3a)

Cells A18 and C18           Account name for the long-term liability account and its amount (no

abbreviations) (PG-3b)

Cells A19 and C19           Account name for the owner’s withdrawal account and its amount (PG-3c)

Cells A20 and D20          Description of the final amount (with colon) and a formula to calculate it (PG-3d)

Cells A22 and D22          Appropriate description for the change in Cash and a formula to calculate that amount (PG-3e)

Cells A23 and D23          Name of the appropriate Cash balance and its amount (PG-3f)

Cells A24 and D24          Name of the appropriate Cash balance and a formula to calculate that amount (PG-3g)

Hint: For the cell A20 description, again, check whether the associated amount is positive or negative.

 

Use Find and Replace:

 

Replace A/R with Accounts Receivable. (PG-4a)

Replace all instances of the Accounting number format alone to the Accounting number format with zero decimal places. (PG-4b)

To finalize the worksheet, apply a Bottom Border to the cells for which it is appropriate and apply the “Top and Double Bottom Border” to the one cell that needs it. (PG-4c)

 

Save and close the file.

 

Using Project Grader: Save the file as EA3-A2-StatementofCF-eSubmission and attach it to the assignment you submit for grading.

 

Not using Project Grader: Submit the file per your instructor’s guidelines.