Financial Accounting

Presented below are the balance sheets of Trout Corporation as of December 31, Year 1 and Year 2, and the income statement for the year ended December 31, Year 2. The statement of retained earnings for the year ended December 31, Year 2 is on the next page. All dollars are in thousands.

TAdditional Information:

1. On April 15, Year 2, Trout issued 2 shares of its common stock for land having a fair value

of $100.

2. On May 25, Year 2, Trout borrowed money from an insurance company. The underlying

promissory note bears interest at 15% and is payable in three equal annual installments of

$150. The first payment is due on May 25, Year 3.

3. On July 1, Year 2, Trout sold equipment costing $52 for $33 cash.

4. On October 10, Year 2, Trout declared a cash dividend of $40 on its common stock.

5. The Selling and Administrative Expense account includes Depreciation Expense.

A. Using EXCEL, prepare a statement of cash flows for Trout Corporation using the direct method of reporting cash flows from operating activities for the year ended December 31, Year 2.

B. Using the same EXCEL workbook and a second tab, prepare the operating activities section only for the statement of cash flows for Trout Corporation using the indirect method for the year ended December 31, Year 2.

Part A requires a complete SCFs applying the direct method to the operating activities section.
Part B only requires the operating activities section applying the indirect method.