Wefald Laboratories: PivotTables and the Statement of Cash Flows
Wefald Laboratories is a small, high-tech business that performs specialized testing on animal
specimens to detect exposure to various hazardous chemicals. It is a small but prosperous business run
by several university professors from engineering and veterinary medicine. As such, their knowledge of
accounting is very limited. They managed to hire a computer engineering student who had taken a
bookkeeping course to enter accounting transactions into a general ledger system programmed in Visual
Basic for the first two years of the business’ existence (2007 and 2008). However, given the student’s
limited knowledge, Wefald can only prepare a very simple Balance Sheet and Income Statement. Now,
they would like to prepare a Statement of Cash Flows. They would like you to complete this task. The
student has extracted the general ledger data for the first two year’s operations and placed it in the
spreadsheet titled “Accounting Cash Flows.xls” on the sheet titled “GL Data.” You should follow these
steps to complete this task:
1. Create a Pivot Table showing the total of all of the transactions, by account and year. See the
example on the next page for the format of the Pivot Table. If you need help creating the Pivot
Table, refer to the sheet titled “Instructions” in the Excel file, or view the Pivot Table video I
provided you.
2. From the data in the Pivot Table and the additional information provided below, create a Statement
of Cash Flows for 2008 using the indirect method. Your Statement of Cash Flows should look like
the example on the next page, and should use FORMULAS to capture the data from the Pivot Table
so that changes to the Pivot Table are automatically reflected in the Statement of Cash Flows.
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In 2008, a dividend of $150,000 was declared. No dividends were declared or paid in 2007.
In 2008, Property, Plant and Equipment were purchased in exchange for $ 250,100 in common
stock
In 2008, additional Property, Plant and Equipment were purchased in exchange for bonds
payable of $ 60,000. The journal entry made at the time of the purchase was:
PP&E
Discounts on Bonds Payable
Bonds Payable

60,000
5,000
65,000
The journal entry below was also made as a result of a transaction in 2008.
Cash
Accum. Depr. - PP&E
Loss on Equipment
PP&E
50,000
10,000
30,000
90,000
3. Format the original Pivot Table data and your Statement of Cash Flows to look professional.
Print out your Pivot Table and Statement of Cash flows. Please make sure the entire printout fits on a
single page. Attach any supporting computations.
dynamic label
Extra Credit: The cell that contains the Label “Net Increase in Cash” should really be modified so that it says “Net Increase in Cash”
when the corresponding number is positive, and “Net Decrease in Cash” when the corresponding number is negative. Creating a
dynamic label like this, whose value depends on the value of another cell (the actual change in cash) can be accomplished using an
“IF” statement. Use the Excel help files, as needed, to create an IF statement for the change in cash label. Modify the actual change
in cash cell (using undo afterward) to make sure that that the dynamic label function works properly.