Use the income statement and balance sheet to prepare a statement of cash flows using the indirect method.

Note: To complete the assignment, go to the worksheet tab labeled Cash Flow and complete the statement of cash flows INNOVATION ELECTRONICS, INC Income Statement For the Year Ended December 31, 20x2 Net sale:s Gain on sale of land $ 2,430,000 6,500 Total revenues 2,436,500 Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense $ 1,565,000 598,000 17,000 63,000 Total expenses 2,259,000 Net income $177,500 Note: To complete the assignment, go to the worksheet tab labeled Cash Flow and complete the statement of cash flows Note: Additional information is included at the bottom of the statement INNOVATION ELECTRONICS, INC Balance Sheet At December 31 20X2 20X1 Assets Current assets: $184,420 $ Cash Accounts receivable Inventor Prepaid insurance 68,700 134,500 2,980 25,740 83,000 128,000 4,560 Long-term assets: Investments Land Equipment Accumulated depreciation 211,000 208,500 203,000 117,500 120,000 255,000 203,000 101,500 Total assets 895,600 S 717,800 Liabilities and Stockholders' Equit Current liabilities: Accounts payable Interest payable Income tax payable 26,500 S 3,400 30,200 81,000 2,300 32,500 Long-term liabilities: Notes payable 255,000 242,000 Stockholders' equit Common stock Retained earnings 273,000 307,500 230,000 130,000 Total liabilities and stockholders' equit 895,600 S 717,800 Additional Information for 20X2: 1. Assume that all increases and decreases in long term assets, long term liabilities and common stock are a result of cash transactions. 2. Land costing $46,500 was sold, resulting in a gain of $6,500. No other long-term assets were sold 3. Additional long-term investments were purchased 4. An additional long-term note payable was signed. No repayments on notes were made 5. Additional common stock was issued 1 Required 2 Complete the statement of cash flows (indirect method) shown below by using formulas that reference 3 data from the income statement and balance sheet (found by clicking the tabs at the bottom of this 4worksheet. Note: Blank cells may be included in calculations INNOVATION ELECTRONICS, INC. Statement of Cash Flows For the Year Ended December 31, 20X2 7 9 Cash Flows from Operating Activities: 10 Net income 1 1 Adjustments to reconcile net income to net cash 12 provided by operating activities: 13 Depreciation expense 14 Gain (on sale of land 15 Changes in current assets and current liabilities: 16 Accounts receivable 17 Inventor 18 Prepaid insurance 19 Accounts payable 20 Interest payable 21 Income tax pavable 22 Net cash provided by (used in) operating activities 23 23 24 Cash Flows from Investing Activities: 25 Purchase investments 26 Sale of land 27 Net cash provided by (used in investing activities 28 29 Cash Flows from Financing Activities: 30 Issue common stock 31 Issue long term note 32 Net cash provided by (used in) financing activities 33 Net increase (decrease) in cash 34 Cash at beginning of the period 35 Cash at end of the period