Instructions for the Microsoft Excel Templates

Extensive detail and information is contained within the manual.

Striking the "F1" key or following the path "Windows>Excel Help" will invoke the Office Assistant and bring up one of
several help menus.

You should enter your name, course ID, and date name into the cells at the top of the page.

Each page contains a page footer with a Page # of Page ## as well as time and date to assist in assembly of multiple
pages.

Each worksheet contains the identification of the problem or exercise.

All formatting should have been accomplished to provide satisfactory presentation. See the text for additional assistance
in formatting.

There should be no need to insert columns or rows into the workbooks.

If more than one page is required by the problem, the page breaks are preset.

In general, the yellow highlighted cells are the cells which work and effort should be presented.

Place the proper account title in the cell where the word "Account title" appears on the template.

Place the value in the cell where the word "Value" or "Amount" appears on the template. A formula may be placed in
some of these cells.

Write a formula into cells where the word "Formula" appears. In these cells, an amount calculated can be entered. An
amount can be placed in these cells.

Place the explanation for the entry in the cell where the word "Text Explanation" appears on the template.

Insert the account number where "Acct Nbr" appears on the template during posting.

Insert the journal reference where "JOURN #" appears on the template during posting.

Insert the title in the cell where "TITLE" appears on the template.

The print area is defined to fit onto 8 1/2" X 11" sheets in portrait or landscape mode as required.

The gray filled cells define the perimeter of the problem and the print area.

The problem is formatted for whole dollars with comma separations (no cents) except where required.

The display may have "Freeze Pane" invoked so column titles remain visible during data entry.

Negative values may be shown as ($400) or -$400.

Instructions, Page 1 of 4, 02/14/2011, 08:35:32

Consider using "Split" panes to assist in copy and paste of data.

Much of the exercises and problems can have data entered by the "look to" or "=A34" type formula where cell A34
contains the data to be entered. This precludes typing and data entry errors.

Instructions, Page 2 of 4, 02/14/2011, 08:35:32

Name:
Batch & Section
Problem: Statement of Cash Flows - Direct Method
Course:
Date:
Marks 20
Mortonson Company has not yet prepared a formal statement of cash flows for the 2010 fiscal year.
Comparative balance sheets as of December 31, 2009 and 2010, and a statement of income and
retained earnings for the year ended December 31, 2010, are presented below:

MORTONSON COMPANY
Statement of Income and Retained Earnings
For The Year Ended December 31, 2010
($000 Omitted)
Sales $3,800
Expenses
Cost of goods sold $1,200
Salaries and benefits 725
Heat, light, and power 75
Depreciation 80
Property taxes 19
Patent amortization 25
Miscellaneous expenses 10
Interest 30 2,164
Income before income taxes 1,636
Income taxes 818
Net income 818
Retained earnings - January 1, 2010 310
1,128
Stock dividend declared and issued 600
Retained earnings - December 31, 2010 $528

MORTONSON COMPANY
Comparative Balance Sheet
December 31
($000 Omitted)
Assets 2010 2009
Current assets
Cash $333 $100
U.S. Treasury notes (Available-for-sale) 10 50
Accounts receivable 780 500
Inventory 720 560
Total current assets 1,843 1,210
Long-term assets
Land 150 70
Buildings and equipment 910 600
Accumulated depreciation (200) (120)
Patents (less amortization) 105 130
Total long-term assets 965 680
Total assets $2,808 $1,890

Liabilities and Stockholders' Equity

Current liabilities
Accounts payable $420 $330
Income taxes payable 40 30
Notes payable 320 320
Total current liabilities 780 680
Long-term notes payable - due 2012 200 200
Total liabilities 980 880
Stockholders' equity

Problem 23-3, Page 3 of 4, 02/14/2011, 08:35:32

Name:
Batch & Section
Problem: Statement of Cash Flows - Direct Method
Course:
Date:
Common stock outstanding 1,300 700
Retained earnings 528 310
Total stockholders' equity 1,828 1,010
Total liabilities and stockholders' equity $2,808 $1,890

Instructions:
Prepare a statement of cash flows using the direct method. Changes in accounts receivable and in
accounts payable relate to sales and cost of sales. Do not prepare a reconciliation schedule.

MORTONSON COMPANY
Statement of Cash Flows
For The Year Ended December 31, 2010
($000 omitted)
Cash flows from operating activities
Cash receipts from customers (a) Amount
Payments for merchandise (b) Amount
Salaries and benefits Amount
Heat, light, and power Amount
Property taxes Amount
Interest Amount
Miscellaneous Amount
Income taxes (c) Amount Formula
Net cash provided by operating activities Formula

Cash flows from investing activities

Sale of available-for-sale investments Amount
Purchase of buildings and equipment Amount
Purchase of land Amount
Net cash used by investing activities Formula

Increase in cash Amount

Cash, January 1, 2010 Amount
Cash, December 31, 2010 Formula

(a) Sales Amount

Deduct ending accounts receivable Amount
Formula
Add beginning accounts receivable Amount
Cash receipts (collections from customers) Formula

(b) Cost of goods sold Amount

Add ending inventory Amount
Goods available for sale Formula
Deduct beginning inventory Amount
Purchases Formula
Deduct ending accounts payable Amount
Formula
Add beginning accounts payable Amount
Cash purchases (payments for merchandise) Formula

(c) Income taxes Amount

Deduct ending taxes payables Amount
Formula
Add beginning taxes payable Amount
Income taxes (cash) Formula

Problem 23-3, Page 4 of 4, 02/14/2011, 08:35:33